Homework (Ch 06) The following graph shows the labor market for research assistants in the fictional country of Academia. The equilibrium wage is $10 per hour, and tl equilibrium number of research assistants is 200. Suppose the government has decided to institute a $4-per-hour payroll tax on research assistants and is trying to determine whether the tax should be levied on the employer, the workers, or both (such that half the tax is collected from each side). Use the graph input tool to evaluate these three proposals. Entering a number into the Tax Levied on Employers field (initially set at zero dollars per hour) shifts the demand curve down by the amount you enter, and entering a number into the Tax Levied on Workers field (initially set at zero dolla per hour) shifts the supply curve up by the amount you enter. To determine the before-tax wage for each tax proposal, adjust the amount in the Wage field until the quantity of labor supplied equals the quantity of labor demanded. You will not be graded on any changes you make to this graph Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Research Assistants 20 18 I Wage (Dollars per hour) 4 Supply 16 Labor Demanded (Number of workers) Labor Supplied (Number of workers) 14 248 152 12 10 Demand Shifter Supply Shifter Tax Levied on Employers (Dollars per hour) Tax Levied on Workers (Dollars per hour) Dem and 14 40 80 120 100 200 240 280 320 360 400 LABOR (Number of workers) WAGE (Dollars per hour)
Homework (Ch 06) The following graph shows the labor market for research assistants in the fictional country of Academia. The equilibrium wage is $10 per hour, and tl equilibrium number of research assistants is 200. Suppose the government has decided to institute a $4-per-hour payroll tax on research assistants and is trying to determine whether the tax should be levied on the employer, the workers, or both (such that half the tax is collected from each side). Use the graph input tool to evaluate these three proposals. Entering a number into the Tax Levied on Employers field (initially set at zero dollars per hour) shifts the demand curve down by the amount you enter, and entering a number into the Tax Levied on Workers field (initially set at zero dolla per hour) shifts the supply curve up by the amount you enter. To determine the before-tax wage for each tax proposal, adjust the amount in the Wage field until the quantity of labor supplied equals the quantity of labor demanded. You will not be graded on any changes you make to this graph Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Research Assistants 20 18 I Wage (Dollars per hour) 4 Supply 16 Labor Demanded (Number of workers) Labor Supplied (Number of workers) 14 248 152 12 10 Demand Shifter Supply Shifter Tax Levied on Employers (Dollars per hour) Tax Levied on Workers (Dollars per hour) Dem and 14 40 80 120 100 200 240 280 320 360 400 LABOR (Number of workers) WAGE (Dollars per hour)
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter4: Labor And Financial Markets
Section: Chapter Questions
Problem 21CTQ: Other than the demand for labor, what would be another example of a 'derived demand?
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