Question
1.Workers complain about the tax, so the government taxes the firms $3 instead. a.At some wage W, how much do workers receive (after-tax) per unit
1.Workers complain about the tax, so the government taxes the firms $3 instead.
a.At some wage W, how much do workers receive (after-tax) per unit of labor? (1pt)
b.At some wage W, how much do firms pay (after-tax) per unit of labor? (1pt)
c.Using the demand function from question 1, write the new demand function with the tax. (1pts)
d.Graph the old supply and demand functions (from question 3) and the new demand function. (1pts)
e.Solve for the new equilibrium wage and quantity?(1pt)
f.How has the change in tax affected the wages workers' receive after tax?(1pt)
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