Suppose that in the country of Tributia a worker’s supply of labor is given by H = 140W, and a firm’s demand for labor by H = 2000 − 2W, where W is wage per hour, and H is quantity of hours worked.

a. Suppose that the government of Tributia decides to impose an income tax. Calculate the deadweight loss that would be expected if the government imposes a proportional tax of 25% on all of the worker’s earnings. the high-skill workers from paying any tax at all. Will this new, regressive tax system be more or less efficient than the old, proportional tax system?