Refer to the information provided in Figure 19.1 below to answer the question(s) that follow. Figure 19.1
-Refer to Figure 19.1. After firms can respond to the payroll tax, the per-hour equilibrium wage paid by firms ________ compared to the original equilibrium wage.

Question

Refer to the information provided in Figure 19.1 below to answer the question(s) that follow.  Figure 19.1
-Refer to Figure 19.1. After firms can respond to the payroll tax, the per-hour equilibrium wage paid by firms ________ compared to the original equilibrium wage.

Quizplus · Accepted Answer

The payroll tax is a tax on employers, so firms will respond by reducing the wages they pay to workers. The per-hour equilibrium wage paid by firms will decrease by $3 compared to the original equilibrium wage.

Refer to the Information Provided in Figure 19