a. Consider the following equations: LD= 400 - 8W and LS= 4W; where the notations have their usual meanings. What is the maximum wage rate the firms will offer in this market? What is the maximum number of workers required in this market?

b.Use the equations to solve for equilibrium wage rate and workers in this market and show those on the graph.

c. Suppose a $1 tax is imposed on the producers/employers in this market. What happens to the wage rate? What happens to the number of workers employed after the tax is imposed.