Question: Suppose that the demand for workers is given by the equation QD = 40 - W(1+t) and the supply of workers is given by Q5

 Suppose that the demand for workers is given by the equation

Suppose that the demand for workers is given by the equation QD = 40 - W(1+t) and the supply of workers is given by Q5 = 10 + W(1+b). What is the equilibrium W and W(1+b)? W(1+b) is the worker's full compensation, from their perspective, and that's what we need to focus on to see whether \"employerpaid\" benets actually benet workers after money wages (W) adjust to the change in worker supply and demand caused by the t and b scheme. We also need to see what happens to W money wages when the payment of worker benets is forced onto rms. Do wages rise or fall when rms are taxed t percent on every $1 of wages and employees receive b percent in benets on every $1 of wages? Fill in the below table

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