Supply of construction workers in a small town is given by Qs W-10, and demandfor construction workers is given by Qd = 50-3W, where Q is the number of workersand W is the hourty wage. The town government imposes a tax of $1 per hour perconstruction worker. What percentage of the tax will construction workers end uppaying?OA 75%O B. 60%OC. 33%O D. 50%

We know that at equilibrium demand for labour and supply of labour are equal at certain wage rate…

Supply of construction workers in a small town is given by Qs =W- 10, and demand for construction workers is given by Qd = 50 - 3W, where Q is the number of workers and W is the hourly wage. The town government imposes a tax of $1 per hour per construction worker. What percentage of the tax will construction workers end up paying? OA 75% O B. 60% OC. 33% O D. 50%

Supply of construction workers in a small town is given by Qs =W- 10, and demand for construction workers is given by Qd = 50 - 3W, where Q is the number of workers and W is the hourly wage. The town government imposes a tax of $1 per hour per construction worker. What percentage of the tax will construction workers end up paying? OA 75% O B. 60% OC. 33% O D. 50%

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 40P: Assume that the supply of law-skilled worker is fairly elastic, but the employers demand for such...

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