Calculate the excess burden resulting from this tax

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Reference no: EM13155021

At a wage of $32 per hour, the laborers in a particular market worked 100 hours a week. At a wage of $57 per hour, workers would work 200 hours per week. Suppose the wage is $57 per hour, and the government implements a 25% tax on labor income as a way to raise revenue. Calculate the excess burden resulting from this tax, and illustrate your answer with a graph

Reference no: EM13155021

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