(Consumer Choice) Consider your decision about how many hours to work.
A) Draw your budget constraint assuming that you pay no taxes on your income. On the same diagram, draw another budget constraint assuming that you pay 15 percent tax.
B) Show how the

The budget constraint without taxes would be a straight line indicating that an individual's available income is equal to their hours worked multiplied by their pay rate. With the imposition of taxes at 15 percent, the budget constraint would consist of a line that dips below the original line by 15 percent. This would mean that the individual would have to work more hours in order to make the same amount of money. This is due to the fact that the individual would now have to pay a portion of their wages to the government in taxes, resulting in a decrease in their available income. Therefore, the individual would need to work longer hours in order to make up for this decrease.