7. Effect of a tax on buyers and sellers The following graph shows the weekly market for sweatpants in some hypothetical economy. Suppose the government levies a tax of $40.60 per pair. The tax places a wedge between the price buyers pay and the price sellers receive. 200 180 160 Demand Supply 140 120 PRICE (Dollars per pair 100 80 Tax Wedge 60 O 100 200 300 400 500 600 700 800 900 1000 QUANTITY (Pairs of sweatpants) MacBook Air * 00 89 LO O m m C O LL I ZChapter 06 Homework 4. Minimum wage legislation The following graph gives the labor market for the fast-food industry of the imaginary city of Combopolis. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Labor in the Fast Food Industry Wage Supply (Dollars per hour) Labor Demanded 600 Labor Supplied (Hundreds of (Hundreds of 368 workers) workers) WAGE (Dollars per hour) Demand O IL 0 80 160 240 320 400 480 560 640 720 800 LABOR (Hundreds of workers) In this market, the equilibrium wage is $ per hour, and the equilibrium quantity of labor is hundred workers. MacBook Air * CO # m 8 LO