Suppose that the supply curve for lifeguards is , and the demand curve for lifeguards is L
Question:
Suppose that the supply curve for lifeguards is , and the demand curve for lifeguards is Ls = 20, and the demand curve for lifeguards is LD = 100 - 20W, where L = the number of lifeguards and W = the hourly wage. Graph both the demand and supply curves. Now, suppose that the government imposes a tax of $1 per hour per worker on companies hiring lifeguards.
Draw the new (after-tax) demand curve in terms of the employee wage.
How will this tax affect the wage of lifeguards and the number employed as lifeguards?
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Related Book For 
Modern Labor Economics Theory And Public Policy
ISBN: 9780132540643
11th Edition
Authors: Ronald Ehrenberg, Robert Smith
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