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graph shows the labor market for research assistants in the fictional country of Universalia. The equilbrium 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 be levied on the employer, the workers, or both (such that half the tax is collected from each side). tax on research assistants and is trying to determine whether the tax should Use the graph input tool to evaluate these three proposals. Entering a number into the Tax Levied on Employers field (inutially set at zero dollars per curve down by the amount you enter, and entering a number into the Tax Levied on Workers field (initially set et zero dollars per hour) shifts the supply curve up by the amount you enter. To determine the before-tax wage for each tax 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 feld, the graph and eny corresponding amounts in each orey field will hange accordingly Graph Input Tool Market for Research Assistants Sup per hour) Labor Demanded 248 Labor Suplieke)152 (Number of workers) Demand Shifter Tax Levied on (Dolars per hour) Supply Shifter 10-+ □ㅡ이 Tax Levied on Delars per hour) 011 IHH 0 4 80 120 160 200 240 260 330 300 400 OR (Number of workers) ^놓 0 Type here to search
For each of the proposals, use the previous graph to determine the new number of paid by employers (that is, the wage paid to workers plus any taxes collected from the assistants (that is, the wage received by workers research assistants hired. Then compute the after-tax amount employers) and the after-tax amount eerned by research minus any taxes collected from the workers). After-Tax Wage Paid by Employers (Dollars per hour) After-Tax Wage Received by Workers (Dollars per hour) Tax Proposal Levied on Employers (Dollars per hour) Levied on Workers Quantity Hired (Number of workers) (Dollars per hour) Suppose the government is concerned that research assistants already make too little paid by employees. Of the three tax proposals, which is best for accomplishing this goal? money and, therefore, wants to minimize the share of the tax O The proposal in which the entire tax is collected from workers O The proposal in which the tax is collected from each side evenly O The proposal in which the tax is collected from employers O None of the proposals is better than the others
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Cniven that the equitibrium number of reseavch assistan 200 anl the woge is & o Su Ppose tax of Suts imposed Thenthe followig Case show the eff ecton demand and Supply when the buvden the ta is baken by employers and Gworkers CaSe 9raph shos the ecF eck-cahen $u tax mount e-is paid by the employevs . supply line Demand line. 20 200 24 200 Lahor (uumber of workers) hen tax amount is paid by the employer the demand Cuwe shift tou, avd the Left an」uage vote decreafe by $ Y -thus the neu eauilibrium wage vate s Sand acant 9aph Show efectiueisy Lay omount is sheh aSe 2 0 ar) 0 1o2008 Lbour (vumber ofuortetuhen the baY anunt is paid by the work er the supply cuvve Shift touards the left and woge tote icreafe by Thuj the new cojuitibrium uage rote s li and quantily of [abor isigy Cuhen the tax íS eQually Collected fvom the㎝Ad of and the orkethe amount paid by eachofthemto 9overmen t is $2.rhe Follouwing groph shou the effect when 2 tax amount İSpaid by bot Show the twovkev and em plore surplj 니 2 2.0 2go rve Shiet towovd the lec eauilibium wage vate is Slo per houv a The demand and Supply cu e t he Follosing table ShowS wage paid and veceived Lev i el on after tak Tax PvoPosal Levi ed on lauantit丫|After Tax . lAfterax employestwovkev bythe ovkevS the employe lgų も12. , 142(12-34No Propasad shoud be made as the unge pais ond re Cave d after taX are Same Thus option Dis (ovrect

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