Refer to the Following Figure When Answering
Figure $L _ { 1 } ^ { S }$

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 $L _ { 1 } ^ { S }$ to $L _ { 2 } ^ { S }$
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) no change in either the labor supply or demand curves
E) None of these answers are correct.