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The demand for mill worker hours is given by Qº = 1,000 – 70W, where W is the wage rate per worker hour. The supply of mill worker hours is given by Q= 25W-140. The local government would like for mill workers to be covered by health-care insurance; however, the mill does not currently provide coverage. For this reason, the local government imposes a $5 tax on the mill for each worker hour it hires. The government plans to use this tax revenue to purchase health-care insurance for the mill workers. What portion of the tax is paid for by mill workers (supply) and what portion is paid for by the mill (demand)? Mill workers pay 50% of the tax, while the mill pays 50% of the tax. Mill workers pay 0% of the tax, while the mill pays 100% of the tax. This is because the local government is charging the mill for each worker hour hired. The mill workers pay 26.32% of the tax imposed on the mill, while the mill pays 73.68% of the tax. The mill workers pay 73.68% of the tax imposed on the mill, while the mill pays 26.32% of the tax.

The demand for mill worker hours is given by Qº = 1,000 – 70W, where W is the wage rate per worker hour. The supply of mill worker hours is given by Q= 25W-140. The local government would like for mill workers to be covered by health-care insurance; however, the mill does not currently provide coverage. For this reason, the local government imposes a $5 tax on the mill for each worker hour it hires. The government plans to use this tax revenue to purchase health-care insurance for the mill workers. What portion of the tax is paid for by mill workers (supply) and what portion is paid for by the mill (demand)? Mill workers pay 50% of the tax, while the mill pays 50% of the tax. Mill workers pay 0% of the tax, while the mill pays 100% of the tax. This is because the local government is charging the mill for each worker hour hired. The mill workers pay 26.32% of the tax imposed on the mill, while the mill pays 73.68% of the tax. The mill workers pay 73.68% of the tax imposed on the mill, while the mill pays 26.32% of the tax.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The demand for mill worker hours is given by Q" = 1,000 - 70W, where W is the wage rate per worker hour. The supply of mill worker hours is given by Q = 25W- 140. The local government would like for mill workers to be covered by health-care insurance; however, the mill does not currently provide coverage. For this reason, the local government imposes a $5 tax on the mill for each worker hour it hires. The government plans to use this tax revenue to purchase health-care insurance for the mill workers. What portion of the tax is paid for by mill workers (supply) and what portion is paid for by the mill (demand)? Mill workers pay 50% of the tax, while the mill pays 50% of the tax. Mill workers pay 0% of the tax, while the mill pays 100% of the tax. This is because the local government is charging the mill for each worker hour hired. The mill workers pay 26.32% of the tax imposed on the mill, while the mill pays 73.68% of the tax. The mill workers pay 73.68% of the tax imposed on the mill, while the mill pays 26.32% of the tax.
Transcribed Image Text:The demand for mill worker hours is given by Q" = 1,000 - 70W, where W is the wage rate per worker hour. The supply of mill worker hours is given by Q = 25W- 140. The local government would like for mill workers to be covered by health-care insurance; however, the mill does not currently provide coverage. For this reason, the local government imposes a $5 tax on the mill for each worker hour it hires. The government plans to use this tax revenue to purchase health-care insurance for the mill workers. What portion of the tax is paid for by mill workers (supply) and what portion is paid for by the mill (demand)? Mill workers pay 50% of the tax, while the mill pays 50% of the tax. Mill workers pay 0% of the tax, while the mill pays 100% of the tax. This is because the local government is charging the mill for each worker hour hired. The mill workers pay 26.32% of the tax imposed on the mill, while the mill pays 73.68% of the tax. The mill workers pay 73.68% of the tax imposed on the mill, while the mill pays 26.32% of the tax.
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