Contemporary Labor Economics 9th Edition by Campbell Mcconnell, Stanley Brue, David Macpherson, Robert Powell, David Colander

تمرين 6

Use the following labor market data to determine the answers to (a) through (d) :

a. Is this tax progressive Explain.
b. What is the before-tax equilibrium wage rate
c. What effect does the tax have on the number of hours of work supplied and the market wage rate
d. If the labor supply curve were highly elastic, rather than perfectly inelastic, how would your answers to (c) change