5. Suppose we have a perfectly competitive labor market with a demand elasticity of -1 and a supply elasticity of 0.2.The wage in equilibrium without taxes is $10 per hour.

a. What will be the employment effects of a $1 per hour payroll tax?

b. If the payroll tax is entirely paid for by employers, what will the new equilibrium wage be?

c. What is the deadweight loss associated with the tax?