The Next Questions Refer to the Following

question 20

Multiple Choice

The next questions refer to the following.
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.
-With a tax of zero dollars,equilibrium occurs at

• A) H = 10, W = 100
• B) H = 9, W = 90
• C) H = 8, W = 80
• D) H = 7, W = 70
• E) H = 6, W = 60

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