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

question 17

Multiple Choice

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.