What do you expect to happen to wages and the size of the


To finance a new health insurance program, the government of Millonia imposes a new $2 per hour payroll tax to be paid by employers.

a. What do you expect to happen to wages and the size of the workforce?

b. How will this answer change in markets where labor is inelastically demanded?

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Financial Management: What do you expect to happen to wages and the size of the
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