Use the following labor market data to determine the answers to (a) through (e). Wage rate Quantity demanded Quantity supplied Tax per hour $30 14 22 $10 $24 18 22 $8 $18 22 22 $6 $12 26 22 $4 $6 30 22 $2

a. Is this tax progressive? Explain.

b. What is the before-tax equilibrium wage rate?

c. What effect does the tax have on the quantity of work supplied?

d. What is the after-tax equilibrium wage rate?

e. If the labor supply curve were highly elastic, how would your answer to

(c) change?