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consider the market for unskilled labor in iowa. suppose the governement votes to impose a $3.00 tax on each workers hourly wages. The labor supply

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consider the market for unskilled labor in iowa. suppose the governement votes to impose a $3.00 tax on each workers hourly wages. The labor supply curve will shift up by $3.00. Use the points to trace out the tax revenue the government will gain from this tax and answer the questions.

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20 19 18 Supply + tax Tax Revenue 17 16 Supply 15 Hourly wage ($) O- NWA OOVOO OS NOD Demand 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 Workers (in thousands)

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