Can you please help me with the calculations to get W and Employee's / Employers surplus for the following problem? I get the equilibrium calc but am not understanding how to get W when t and b change. If I simply plug .1 into t and b for example I still get W of 25, which can't be right. Can you please help with the calculation of W to account for the changes to t and b, as well as the calculations for surpluses? Thank you!

Suppose that for each $1 an employee earns, their employer must pay t percent in employee benefits.Example: If workers earn $20 an hour and t = .15, then their employer must pay $3 = (.15)*$20 in benefits.The worker's total hourly cost to the firm is then W(1+t) = $23.

Suppose that for each $1 an employee earns they also receive benefits that they value at b percent of wages.Example: If employees are paid $20 an hour in cash and b = .15, then their employer is paying them benefits that they value at $3 =$20(.15).The workers total compensation?as seen by them?is then W(1+b) = $23.

Important note: The employer cost of employee benefits does not have to be the same as the value to the employee of employer-provided benefits.Something could be lost or gained in the exchange.Because of that, we must let b and t be different variables in the analysis.

Suppose that the demand for workers is given by the equation QD = 40 - W(1+t) and the supply of workers is given by Qs = -10 + W(1+b). What is the equilibrium W and W(1+b)? W(1+b) is the worker's full compensation, from their perspective, and that's what we need to focus on to see whether "employer-paid" benefits actually benefit workers after money wages (W) adjust to the change in worker supply and demand caused by the t and b scheme. We also need to see what happens to W - money wages - when the payment of worker benefits is forced onto firms. Do wages rise or fall when firms are taxed t percent on every $1 of wages and employees receive b percent in benefits on every $1 of wages? Fill in the below table. Employer's b W W(1+b) W(1+t) bw tw Q Employee's Surplus Surplus 0 25 25 25 0 15 ? ? 0.10 0.10 ? 2 ? ? 0.25 0.25 ? ? 0.35 0.25 ? ? ? 0.25 0.35