If the tax rate on income is given by t and the wage is given by w,what is the slope of the indifference curve at the optimal choice? (Assume that the person is not at a corner of the budget constraint.)
A) the slope of the indifference curve depends on preferences.
B) w - t + 1
C) w(t - 1)
D) w(1 - t)
Correct Answer:
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