When people talk about supply and demand curves, it is important to mention that work and land are exceptions. Land, because (usually) you cannot created more land, even if the market price goes up. Work, because everyone only has 24 hours a day, so if you pay them more, they may actually choose to work less, because for many people the entire point is to enjoy their remaining hours.
Which means that tax will also have a different impact on work and land. For discussions on land, see Georgism. Higher tax on work could mean that people now need to take two jobs or cannot afford to retire, i.e. more work.
*
I wonder whether economics students also have their specific biases, which make them more likely to make this simple mistake. For instance, I would expect them to be rich and pro-capitalist, compared to the average population. Which means they are likely to see work as something that people choose voluntarily and rationally, rather than a desperate attempt to survive. When they think about someone making decisions about work, they probably imagine a CEO who already has a few millions in bank account but still wants more, rather than a single mother working two jobs to feed her child. The CEO might be disgusted by a tax increase and retire, but most people do not have this option.
When people talk about supply and demand curves, it is important to mention that work and land are exceptions. Land, because (usually) you cannot created more land, even if the market price goes up. Work, because everyone only has 24 hours a day, so if you pay them more, they may actually choose to work less, because for many people the entire point is to enjoy their remaining hours.
Which means that tax will also have a different impact on work and land. For discussions on land, see Georgism. Higher tax on work could mean that people now need to take two jobs or cannot afford to retire, i.e. more work.
*
I wonder whether economics students also have their specific biases, which make them more likely to make this simple mistake. For instance, I would expect them to be rich and pro-capitalist, compared to the average population. Which means they are likely to see work as something that people choose voluntarily and rationally, rather than a desperate attempt to survive. When they think about someone making decisions about work, they probably imagine a CEO who already has a few millions in bank account but still wants more, rather than a single mother working two jobs to feed her child. The CEO might be disgusted by a tax increase and retire, but most people do not have this option.