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Consider the effect of a proportional tax on hours worked using diagrams to illustrate your answers....

Consider the effect of a proportional tax on hours worked using diagrams to illustrate your answers. Assume consumers are endowed with a certain number of hours of leisure time each week that they can sell to the market in the form of work. Beginning with no tax, draw a diagram to show the effect of the introduction of the proportional tax , also, Given that leisure is a normal good, provide a theoretical prediction about the effect of the tax on hours worked and finally Decompose the overall effect of the tax into income and substitution effects.     

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