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The figure below displays a market for teenage labor with a minimum wage of $6 per hour                                                                                                                                                            How many workers are unemployed at the $6 minimum wage?   LS-LD.        30   (=70-40)   The government places an hourly tax of $1 per worker on employers. Show the effect of the tax on the demand for labor.   With both minimum wage and the labor tax, how many workers do firm employ? What is the incremental effect of the tax on employment?   With both minimum wage and the labor tax, how many workers are unemployed? What is the incremental effect of the tax on unemployment?

The figure below displays a market for teenage labor with a minimum wage of $6 per hour                                                                                                                                                            How many workers are unemployed at the $6 minimum wage?   LS-LD.        30   (=70-40)   The government places an hourly tax of $1 per worker on employers. Show the effect of the tax on the demand for labor.   With both minimum wage and the labor tax, how many workers do firm employ? What is the incremental effect of the tax on employment?   With both minimum wage and the labor tax, how many workers are unemployed? What is the incremental effect of the tax on unemployment?

Principles of Economics 2e
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 29P: Predict how each of the following events will raise or lower the equilibrium wage and quantity of...
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The figure below displays a market for teenage labor with a minimum wage of $6 per hour

     

   
   

 

 

           

                         

 

 

                        

 

                                               

                 

 

  1. How many workers are unemployed at the $6 minimum wage?

 

LS-LD.        30   (=70-40)

 

  1. The government places an hourly tax of $1 per worker on employers. Show the effect of the tax on the demand for labor.

 

  1. With both minimum wage and the labor tax, how many workers do firm employ? What is the incremental effect of the tax on employment?

 

  1. With both minimum wage and the labor tax, how many workers are unemployed? What is the incremental effect of the tax on unemployment?
u istuia lo nousailggs elow displays a market for teenage labor with a minimu ani mayment, ur. wage ($/worker) 8 lent. gainsoo daryo 765432 1 jual 180 1211 malisq an 1 + Labor Supply Min. Wage Labor Demand 0 10 20 30 40 50 60 70 labor bas ons -digid gnizim or ainlqx (ths. workers/hour) llage to adignal to noitudinaib many workers are unemployed at the $6 minimum v se egallos moil stsubang BDY T.St overnment places an hourly tax of $1 per worker or ow the effect of the tax on the demand for labor.
Transcribed Image Text:u istuia lo nousailggs elow displays a market for teenage labor with a minimu ani mayment, ur. wage ($/worker) 8 lent. gainsoo daryo 765432 1 jual 180 1211 malisq an 1 + Labor Supply Min. Wage Labor Demand 0 10 20 30 40 50 60 70 labor bas ons -digid gnizim or ainlqx (ths. workers/hour) llage to adignal to noitudinaib many workers are unemployed at the $6 minimum v se egallos moil stsubang BDY T.St overnment places an hourly tax of $1 per worker or ow the effect of the tax on the demand for labor.
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