According to supply- side economists, as tax rates are reduced, labour supply should increase. This implies that

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The substitution effect of a wage change being greater than the income effect implies that as wages increase (due to lower taxes), individuals are more inclined to work more because the opportunity cost of not working (leisure) becomes higher. This aligns with supply-side economics, which suggests that lower tax rates can lead to an increase in labor supply.

According to Supply- Side Economists, as Tax Rates Are Reduced