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The labor supply and demand curves for workers in the fast food industry are given by: Qls = 980 + 2W and Qld = 1000 - 2W, where W is the wage paid to workers per hour; Qls is the quantity of labor supplied by workers, and Qld is the quantity of labor (in hours) demanded by firms.
a. Graph the supply and demand curves and find equilibrium wages and labor.
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c. What would happen to the burden of the tax if the workers valued the tax $0.30 per worker hour? What is the deadweight loss? Indicate them on the graph.
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