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1. There was a losing health insurance reform in California that required employers to pay a payroll tax into a fund that provided for state-wide health insurance plan (or offer health insurance to their employees). If this law had passed, employers would have had to contribute S1 hour into a health insurance fund for each hour worked by their employees, show graphically what would have happened to wages and employment in California. Be sure to indicate the amount of the tax on your graph. (2 pts) a) b) Show graphically, what would happen to employment and wages if instead the law required each worker to buy $1 worth of health insurance per hour worked? c) Who shoulders the burden of the tax as the tax is administered in part a)? Who shoulders the burden of the tax as the tax is administered in part b)? (2 points)
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