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 $ per day without a minimum wage, and would be reduced by $ per day with a minimum wage at $ 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 earnedincome tax credit under which workers as a group receive the same economic surplus as they do under the $ per hour minimum wage? Assume for simplicity that the earnedincome tax credit has no effect on labor supply. The tax credit would cost the government $ per day.
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