Use the following figure to answer the question : Figure 18-2 :
shows the demand and supply curves of labor.A per-unit tax imposed on the wage income of the employees shifts the supply curve of labor upward.
-According to Figure 18-2,the proportion of the per-unit tax paid by employees is:
A)CB/CA.
B)BA/OB.
C)AB/CA.
D)OA/OC.

Question

Use the following figure to answer the question : Figure 18-2 : 
shows the demand and supply curves of labor.A per-unit tax imposed on the wage income of the employees shifts the supply curve of labor upward. 
-According to Figure 18-2,the proportion of the per-unit tax paid by employees is:
A)CB/CA. 
B)BA/OB. 
C)AB/CA. 
D)OA/OC.

Quizplus · Accepted Answer

The proportion of the per-unit tax paid by employees can be found by comparing the shift in the supply curve to the shift in the demand curve. The shift in the supply curve is represented by the distance from point A to point B. The shift in the demand curve is represented by the distance from point C to point B. Therefore, the proportion of the tax paid by employees is AB/CA.

Use the Following Figure to Answer the Question : Figure