How would each of the following affect Helena Handbasket\'s supply of labor? The

Question

How would each of the following affect Helena Handbasket's supply of labor? The value of Helena's home triples in an unexpectedly hot real estate market. Originally an unskilled worker, Helena acquires skills that give h e r access to a higher-paying job. Assume that her preferences about leisure are not affected by the change in jobs. A temporary income tax surcharge raises the percentage of her income that she must pay in taxes, for the current year only. (Taxes are proportional to income in Helena's country.)

Explanation / Answer

a). the value of Helena supply of labour will decrease. b). The supply of labour by Helena will increase. C) the supply of labour will increase as she would want to compensate the tax rise.

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