poses a $2 per hour tax on all gardeners. Indicate the effect of the tax on the market for gardeners. What is the effect on the equilibrium wage and the equilibrium number of gardeners hired? How much does the gardener receive? How much does the customer pay? How much does the government receive as tax revenue?

Question 21

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M Rising Fertilizer Prices Prospects for the fertilizer sector are exceptional this year. Grain prices have sky rocketed, stimulating greater plantings of grain and greater demand for fertizer The price of fertilizer has soared from US$350 to more than US$600 per tonne during the past year. Source National Post, June 21, 2011 Suppose that the government tries to halt the fertilizer price rise and sets a price ceiling below the equilibrium price mr How would the price celling influence the quantity of fertilizer sold and the shortage or surplus of fertilizer? How would the price celling influence the maximum price that a farmer is willing to pay for the last tonne of fertilizer available on an illicit market? an The price ceiling. OA. decreases OB. increases OC. does not change OD. sometimes increases and sometimes decreases the maximum price that someone is willing to pay for the last tonne of fertilizer available on an illicit market.