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Suppose that all workers, male and female, have identical labor supply functions, which happen to be linear:
L = 100w(1-t)-700 for w(1-t) \geq 7
L = 0 for w(1-t)< 7
In which L is the number of hours a worker chooses to work (we assume that the worker is able to choose his or her own hours of work), w is the worker’s before-tax wage, and t is the (linear) tax rate.
Question:
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