
-The figure above shows a labor market in which an income tax has been imposed.
a.How many hours of labor were employed before the tax was imposed?
b.How many hours of labor are employed after the tax?
c.What was the wage rate employers paid and that workers received before the tax?
d.What is the wage rate employers pay and that workers receive after the tax?
e.What accounts for the difference between what employers pay and what workers receive?
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