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Q. a) Suppose workers face a fixed wage, w. The utility of a worker is u((1-t)explain why,l) where t is a tax rate, h is the number of hours worked and l= 1-h is the amount of leisure. Illustrate what conditions on the worker's utility function need to be imposed such that a reduction in the tax rate will simply an increase in the tax collected by the govt from this worker?
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