Question: Total economic surplus would be $ 1 0 0 0 0 0 per day without a minimum wage, and would be reduced by $ 4

Total economic surplus would be $ 100000 per day without a minimum wage, and would be reduced by $ 4000 per day with a minimum wage at $12 per hour. Calculate the amounts by which employer surplus and worker surplus change as a result of the minimum wage. Employer surplus would be reduced by $ per day. Worker surplus would be increased by $ per day. How much would it cost the government each day to provide an earned-income tax credit under which workers as a group receive the same economic surplus as they do under the $12 per hour minimum wage? (Assume for simplicity that the earned-income tax credit has no effect on labor supply.) The tax credit would cost the government $ per day.

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