What fraction of this tax is borne by the workers?

Suppose the supply of labor is W – t = 10H, where W is the gross wage, t is the tax (in dollars), and H is labor hours. The demand for labor is W = 120 – 2H.

a) 1/6
b) 2/6
c) 3/6
d) 4/6
e) 5/6


e) 5/6

Economics

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