Question

4. As a concern for declining revenue from oil and increasing budget deficit, the Kuwait government decided to introduce 20KD per person monthly fee for medical insurance(from the workers). Refer to table 1 (before the minimum wage) and draw a new demand/supply curve. (10 points) a. How much wage the employers will pay after the fee? (5 points) b. How much is the employers' contribution of the fee? (5 points) c. How much is the workers' contribution of the fee? (5 points) d. How much revenue the government will collect from the proposed fee? (5 points)

Fig: 1

Fig: 2

Fig: 3

Fig: 4

Fig: 5