a) Using a well labeled supply & demand model in the market for labor, show the impact of a tax on wages (i.e. an income tax). Use your graph to make at least two positive and at least two normative statements about income taxes. b) Most people have taxes withheld from their paycheck and then file for a refund at tax time in April. Many people withhold too much and yet they are happy when they get a big refund. Why is withholding too much is irrational and, using the concepts of behavioral economics, why might this be predictably irrational. I c) The tax code is full of deductions and credits that provide incentives for different behaviors. Do some quick research and describe one of those deductions or credits and use economic vocabulary to explain how it changes people's incentives
