QUESTION 6 Consider the following change in the consumer's budget constraint: Consumption leisure What could have generated the observed change? 0 A simultaneous decrease in taxes and increase in the wage O A simultaneous increase in taxes and increase in the wage O A simultaneous decrease in taxes and decrease in the wage O A simultaneous increase in dividend income and increase in the wage QUESTION 8 Consumption, C )- Leisure, I Consider the picture above, in which the consumer chooses to dedicate all of their time to leisure (Suppose for simplicity that T=O). Is this situation possible in equilibrium? 0 No, because if the consumer doesn't supply any work, then rms won't make any prots 0 No, because if the consumer doesn't supply any work, the consumer should consume 0 units of consumption 0 Yes 0 Yes, but only if taxes are greater than 0 QUESTION 5 Suppose that a consumer faces a wage increase. Which picture best represents the change in their budget constraint? 0 Consumption leisure 0 Consumption leisure 0 Consumption leisure 0 Consumption leisure