An increase in the income tax rates: a. makes the labor supply ...

[lindiwe]

An increase in the income tax rates:
 a. makes the labor supply curve more inelastic.
  b. increases the opportunity cost of leisure.
  c. lowers the opportunity cost of leisure.
  d. shifts the labor supply curve to the right.
  e. shifts the labor demand curve to the right.

Question 2

When the income elasticity of demand for a good is negative, one can correctly conclude that:
 a. the good is a normal good.
  b. the good is an inferior good.
  c. the good is a substitute.
  d. the good is a complement.
  e. total revenue will decrease when the price increases.

[Kimmy]

Answer to Question 1

c

Answer to Question 2

b

[lindiwe]

Great answer, keep it coming

[aliotak]

Thanks for the timely response, appreciate it