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Author Question: The figure above shows the labor supply and labor demand curves for personal trainers in the state ... (Read 52 times)

ts19998

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The figure above shows the labor supply and labor demand curves for personal trainers in the state of Florida. The initial equilibrium hourly wage is $10. Suppose the state of Florida institutes an income tax on labor income of $6 an hour in order to buy voting machines for the next election. With the tax in place, the labor supply curve will
◦ remain at LS.
◦ shift to LS1.
◦ shift to LS2.
◦ change so that it becomes the same as LD.
◦ None of these answers is correct.


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Marked as best answer by ts19998 on May 24, 2019

bimper21

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