50 - 3Ed and w = 10 + Es. Please show work for each part. a.What is the equilibrium wage of this market? [a] b.What is the equilibrium number of workers employed in this market
50 - 3Ed and w = 10 + Es. Please show work for each part. a.What is the equilibrium wage of this market? [a] b.What is the equilibrium number of workers employed in this market
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Economics:
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Labor
a.What is the equilibrium wage of this market? [a]
b.What is the equilibrium number of workers employed in this market? [b]
Suppose now a tax of $5 is added into this market.
c.How much do workers receive as wage after this payroll tax? [c]
d.How much do firms have to pay workers after this payroll tax? [d]
e.What is the government tax revenue as a result of this payroll tax? [e]
f.What is the amount of
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Step 1: To find the equilibrium wage, we need to set the labor demand and supply functions equal to each oth
VIEWStep 2: To find the equilibrium number of workers employed in this market, we need to substitute the equilib
VIEWStep 3: c.How much do workers receive as wage after this payroll tax? [
VIEWStep 4: Firms have to pay workers the same wage as before ($22.50 per hour), but they also have to pay a $5
VIEWStep 5: The government tax revenue as a result of this payroll tax would be:
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