Identify the income and substitution effects


Problem

Instead of representing the individual's decisions as a choice between consumption and leisure, they could be represented in terms of a choice between consumption and work. Draw the indifference curves, and identify the income and substitution effects resulting from a change in the tax rate on labor.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Identify the income and substitution effects
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