What happens in the market for labor


"The government decides to increase the sales tax on all goods. The government does not change the tax on income earned from labor. What happens in the market for labor?

A) The quantity oflabor demanded decreases but the demand for labor does not shift.
B) The demand for labor decreases.
C) The supply oflabor increases.
D) There is no change in the labor market.

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Microeconomics: What happens in the market for labor
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