In a Labour Demand and Supply Diagram, Show the Effects

Essay

In a labour demand and supply diagram, show the effects of the following events. In each case, discuss the changes in the equilibrium wage and employment.
a.An increase in the wage income tax.
b.A new trade agreement that allows for foreign competition in Canadian food sector. (Hint: consider how the elasticity of demand for food changes, then how does that affect the elasticity of demand for labour in the food sector.)