Analyze nestle csr initiative plan focuses on society issues
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Graph the demand curve and the supply curve
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Assignment Help >> Business Economics
Question
The demand curve for gardeners is GD = 19 – W, where G = the number of gardeners, and W = the hourly wage. The supply curve is GS = 4 + 2 W.
a. Graph the demand curve and the supply curve. What is the equilibrium wage and equilibrium number of gardeners hired?
b. Suppose the town government imposes a $2 per hour tax on all gardeners. Indicate the effect of the tax on the market for gardeners.
- What is the effect on the equilibrium wage and the equilibrium number of gardeners hired?
- How much does the gardener receive?
- How much does the customer pay?
- How much does the government receive as tax revenue?
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