Problem
Discuss the impact of an increase in the marginal rate of income tax on the individual's supply of labour, on the assumption that leisure is a Giffen good. What are the implications for the market wage rate and employment level? Under what conditions will the labour market be unstable?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.