In a town the demand for math tutors is given by the equation LD = 65 - W, where D = number of math tutors and W= hourly wage. The supply curve LS= 5 + 2W.
a. Calculate the equilibrium wage and number of math tutors in the town and graph the demand and supply curve.
b. If the town mayor imposes a payroll tax of $5 on the employers, how will it affect the equilibrium wage and equilibrium number? How much revenue will the government get through this?