An increase in taxes on labor income shifts the labor supply curve and the .

Name: An increase in taxes on labor income shifts the labor supply curve and the .
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When taxes on labor income increase, the cost of working increases for individuals. Therefore, they may decide to work less and supply less labor, which shifts the labor supply curve leftward. As a result, the after-tax wage rate falls as there are fewer workers in the market.

An Increase in Taxes on Labor Income Shifts the Labor