The operation of the market, market forces and market equilibrium

1
MSc EMP Review of Economics
Consumer Demand
2
Figure 3.1 The work-leisure choice
H MAX
Additional utility gained /lost
Additional utility lost from an hour of paid
employment
?U
?U-
Additional utility gained from an hour of paid
employment
H
H1
Hours of paid employment
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Figure 3.2 The work-leisure choice and a tax rate
reduction
H MAX
Additional utility gained /lost
MC
MB2
MB1
H
H
HMAX
Hours of paid employment