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 wage that workers take home will ________ 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 wage that workers take home will ________ compared to the original equilibrium wage.

Quizplus · Accepted Answer

After firms can respond to a payroll tax, the burden of the tax is typically shared between employers and employees. This means the take-home wage for workers decreases, but not necessarily by the full amount of the tax. A decrease of $2 suggests a partial sharing of the tax burden.

Refer to the Information Provided in Figure 19