Suppose a payroll tax of 7% is imposed. By how much will the wage rate of the workers fall?
A. Wage rates will not fall.
B. 7%
C. 10.6%
D. This cannot be determined from the above diagram.
Answer:B
Suppose a payroll tax of 7% is imposed. By how much will the wage rate of the workers fall?
A. Wage rates will not fall. B. 7% C. 10.6% D. This cannot be determined from the above diagram.