Total economic surplus would be $ minimum wage at $$12$ per hour.

$100000$

per day without a minimum wage, and would be reduced by $

Calculate the amounts by which employer surplus and worker surplus change as a result of the minimum wage.

Employer surplus would be

reduced

$4000$

per day with a

Worker surplus would be increased

by $

$100000$ per day.

y by $ $96000$ per day.

b$.$ 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.