Suppose the Premier of BC proposes a legislation with the objective of reducing healthcare costs: a junk food tax of 20% is applied to all potato chip sales.

1. How would this tax affect the demand and equilibrium price of potato chips? (use a graph and explain in words)
2. How would this tax affect the marginal product and the value of the marginal product of potato chip factory workers? (answer in words)
3. How would the tax affect the demand and equilibrium wage for potato factory workers? (use a graph and explain in words)