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5 Wage rate (dollars per hour) LS + tax LS 12.00 $ 1.25 1075 1000 LD 0 37 40 Quantity of bobor (hours per week)

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5 Wage rate (dollars per hour) LS + tax LS 12.00 $ 1.25 1075 1000 LD 0 37 40 Quantity of bobor (hours per week) The figure above shows a labour market in which an earned income tax has been imposed. a. What is the amount of the tax per hour of labour? $ 1.25 per how of Labour b. How much tax revenue will the government collect each week from each worker? c. How much of the tax is paid by employees? How much is paid by employers? Page 5 of

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