1.10 Philadelphia collects an ad valorem tax on its residents earnings (see the Application Urban Flight), unlike...

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1.10 Philadelphia collects an ad valorem tax on its residents’ earnings (see the Application “Urban Flight”), unlike the surrounding areas. Show the effect of this tax on the equilibrium wage, total employment, employment in Philadelphia, and employment in the surrounding areas. (Hint: See Solved Problem 10.2.)

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Microeconomics

ISBN: 9780133456912

7th Edition

Authors: Jeffrey M. Perloff

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