1. Assuming a competitive labor market, a policy that raises business taxes but has no effect on the labor supply curve should have what overall effects on the local labor market?

(a) Increase in both equilibrium wage and equilibrium employment (b) Increase in equilibrium wage and decrease in equilibrium employment

(c) Decrease in both equilibrium wage and equilibrium employment

(d) Decrease in equilibrium employment but no effect on wage

2. Which of the following is UNLIKELY to explain the population growth of the "Sun Belt" (region of the U.S. stretch across the Southeast and Southwest, including Texas, Florida, Arizona, Alabama, Oklahoma, etc.)?

(a) Low population density relative to major cities in the coasts

(b) The long commuting time in this region

(c) Oil price hike (d) The advent of air conditioning

Plz provide an explanation for my understanding. Thank you.