Assume that labor supply follows the following equation L s = 2 + w 1.8 . Assume
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Assume that labor supply follows the following equation Ls = 2 + w1.8. Assume that the wage is equal to 3 without taxes and that the after-tax wage is 2.4. What is labor supply with and without taxes? Calculate the elasticity of labor supply to wages.
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To calculate labor supply with and without taxes well use the labor supply equation Ls 2 w18 where L...View the full answer
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