Question

Question 7 2 pts What information can the labor supply and labor demand curves give you together? Assume that we do not know how competitive the labor market is, or whether or not there is a tax or subsidy. Which of the two sides (workers or employers) will bear the burden of a tax The number of workers who are willing to work at a given wage The equilibrium wage The wage at competitive equilibrium Whether or not there will be a labor surplus The number of workers employers are willing to hire at the given wage The level of employment The wage employers will pay The wage workers will recieve

Answer 1

We can determine which side will bear tax by elasticity of the demand and supply, the number of worker willing to work at a given wage through the supply curve, wage at competitive Equilibrium through the intersection of the curves, the number of workers emoloyers are willing to hire at particular wage through demand curve.

Equilibrium wage will depend upon the tax or subsidy same gorled with surplus level of employment and wage employer will pay it employee recieve