graph below depicts the labor for security guards in Philadelphia, The state subsidizes labor through a tax credit that gives security guards $ 4 per hour worked. wage (S/hr) Labor Supply 18 16 14 12 10 8 Labor Demand 40 60 80 100 120 140 160 180 Q (thousand hours) (a) Mark the axes with the equilibrium hours worked Q and wage W without the subsidy. The market wage is s | and guards work thousand hours. (b) Mark the graph with the wage paid WS by firms after the subsidy goes into effect. Firms pay s per hour with the subsidy. (c) Mark the graph with the total pay received by workers WR after the subsidy goes into effect. Workers receive S per hour with the subsidy. (d) Before the subsidy guards work |Q= hours per week. After the subsidy they work QS= |hours per week. Label the quantity axis with hours worked Q and QS. (e) Total earnings by all janitors is s after the subsidy. The taxpayer cost of the subsidy is 20 4. 2.

graph below depicts the labor for security guards in Philadelphia, The state subsidizes labor through a tax credit that gives security guards $ 4 per hour worked. wage (S/hr) Labor Supply 18 16 14 12 10 8 Labor Demand 40 60 80 100 120 140 160 180 Q (thousand hours) (a) Mark the axes with the equilibrium hours worked Q and wage W without the subsidy. The market wage is s | and guards work thousand hours. (b) Mark the graph with the wage paid WS by firms after the subsidy goes into effect. Firms pay s per hour with the subsidy. (c) Mark the graph with the total pay received by workers WR after the subsidy goes into effect. Workers receive S per hour with the subsidy. (d) Before the subsidy guards work |Q= hours per week. After the subsidy they work QS= |hours per week. Label the quantity axis with hours worked Q and QS. (e) Total earnings by all janitors is s after the subsidy. The taxpayer cost of the subsidy is 20 4. 2.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 8PA

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