3. Consider your decision about how many hours to work. a) Draw your budget constraint assuming that you play no taxes on your income. on the same diagram, draw another budget constraint assuming that you pay 15 percent tax.

3. Consider your decision about how many hours to work. a) Draw your budget constraint assuming that you play no taxes on your income. on the same diagram, draw another budget constraint assuming that you pay 15 percent tax.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 5PA

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3. Consider your decision about how many hours to work.

a) Draw your budget constraint assuming that you play no taxes on your income. on the same diagram, draw another budget constraint assuming that you pay 15 percent tax.

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consider your decision about how many hours to work. draw your budget constraint assuming that you pay no taxes on your income. on the same diagram, draw another budget constraint assuming that you pay 15 percent tax. show how the tax might lead to more hours of work,fewer hours or the same number of hours.explain.
1. a consumer has income of rm3000. orange juice costs rm3 a glass, and chicken rice costs rm6 a plate. draw the consumers budget constraint. what is the slope of this budget constraint. 2. Draw a consumer's indifference curves for orange juice and chicken rice . Describe and explain four properties of these difference curves. 3. Consider your decision about how many hours to work. a) Draw your budget constraint assuming that you play no taxes on your income. on the same diagram, draw another budget constraint assuming that you pay 15 percent tax. b) Show how the tax might lead to more hours of work, fewer hours, or the same number of hours. explain.
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