Question

The following graph shows the labor market for research assistance in the fictional country of collegiate. The equilibrium wage is $10 per hour and equilibrium number of research assistance is $200

6. Who should pay the tax? The following graph shows the labor market for research assistants in the fictional country of Collegia. The equilibrium wage is $10 per hour and the equilibrium number of research assistants is 200. Suppose the government has decided to institute a $4-per-hour payroll tax on research assistants and is trying to determine whether the tax should be levied on the employer, the workers, or both (such that half the tax is collected from each side). Use the graph input tool to evaluate these three proposals. Entering a number into the Tax Levied on Employers field (initially set at zero dollars per hour) shifts the demand curve down by the amount you enter, and entering a number into the Tax Levied on Workers field (initially set at zero dollars per hour) shifts the supply curve up by the amount you enter. To determine the before-tax wage for each tax proposal, adjust the amount in the Wage field until the quantity of labor supplied equals the quantity of labor demanded. You will not be graded on any changes you make to this graph, Note: Once you enter a value in a white field, the graph and any corresponding amounts in each gley field will change accordingly

Answer 1

Table

Tax on employers	tax on employees	Q hired	wage paid	wage received
4	0	100	12	8
0	4	100	12	8
2	2	100	12	8

MCQ: option D)

All proposals are same, bcoz in each case both bear 50 % of tax, bcoz the slope of both demand & supply curves are same .

In each case, employees get $ 8 & employers get $ 12

Thus all cases are same