-The above figure shows a competitive firm's demand for labor assuming that the firm's output sells for $1 per unit.If the wage is $5 per hour,a 2 percent cut in all the workers' income tax will cause the firm to
A)demand less labor.
B)demand more labor.
C)raise the wage paid to the worker.
D)None of above.

Question

-The above figure shows a competitive firm's demand for labor assuming that the firm's output sells for $1 per unit.If the wage is $5 per hour,a 2 percent cut in all the workers' income tax will cause the firm to
A)demand less labor. 
B)demand more labor. 
C)raise the wage paid to the worker. 
D)None of above.

Quizplus · Accepted Answer

The Answer is B

-The Above Figure Shows a Competitive Firm's Demand for Labor