50 - 3Ed and w = 10 + Es. Please show work for each part. a.What is the equilibrium wage of this market? [a] b.What is the equilibrium number of workers employed in this market

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
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Chapter14: Labor Markets And Income
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Problem 1SCQ: Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and...
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Economics: Labor Economics

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Labor demand and supply are given by w = 50 - 3Ed and w = 10 + Es. Please show work for each part.

a.What is the equilibrium wage of this market? [a]

b.What is the equilibrium number of workers employed in this market? [b]

 

Suppose now a tax of $5 is added into this market.

c.How much do workers receive as wage after this payroll tax? [c]

d.How much do firms have to pay workers after this payroll tax? [d]

e.What is the government tax revenue as a result of this payroll tax? [e]

f.What is the amount of deadweight loss generated as a result of this payroll tax (do not round, write out entire number)? [f]

 

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