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Refer to the Following Figure When Answering
Figure L2SL _ { 2 } ^ { S }

Question 35

Multiple Choice

Refer to the following figure when answering
Figure 7.3: Labor Market  Refer to the following figure when answering   Figure 7.3: Labor Market   -In the labor market depicted in Figure 7.3, an increase in the income tax would result in: A)  a shift in labor supply from  L _ { 2 } ^ { S }  to  L _ { 1 } ^ { S }  B)  a shift in labor demand from  L _ { 2 } ^ { D }  to  L _ { 1 } ^ { D }  C)  a shift in labor demand from  L _ { 1 } ^ { D }  to  L _ { 2 } ^ { D }  D)  a shift in labor supply from  L _ { 1 } ^ { D }  to  L _ { 2 } ^ { D }  E)  None of these answers are correct.
-In the labor market depicted in Figure 7.3, an increase in the income tax would result in:


A) a shift in labor supply from L2SL _ { 2 } ^ { S } to L1SL _ { 1 } ^ { S }
B) a shift in labor demand from L2DL _ { 2 } ^ { D } to L1DL _ { 1 } ^ { D }
C) a shift in labor demand from L1DL _ { 1 } ^ { D } to L2DL _ { 2 } ^ { D }
D) a shift in labor supply from L1DL _ { 1 } ^ { D } to L2DL _ { 2 } ^ { D }
E) None of these answers are correct.

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