Labor Supply Theoretical considerations Based on the specific indifference curves in Figure 16.2, we can conclude the following The person is worse off after the tax, that is utility is lower In this case, the person reduces hours of work from FT to /T8 Labor Supply: Theoretical Considerations • Based on the specific indifference curves in Figure 16.2, we can conclude the following: – The person is worse off after the tax, that is, utility is lower – In this case, the person reduces hours of work from FT to IT