7. Effect of a tax on buyers and sellers The following graph shows the weekly market for craft beer in some hypothetical economy. Suppose the government levies a tax of $11.60 per case. The tax places a wedge between the price buyers pay and the price sellers receive. 50 40 Supply 35 30 Tax Wedge 25 PRICE (Dollars per case) 20 15 10 Demand 10 20 30 40 50 60 70 80 90 100 QUANTITY (Cases of craft beer)For each of the proposals, use the previous graph to determine the new number of laboratory aides hired. Then compute the after-tax amount paid by employers (that is, the wage paid to workers plus any taxes collected from the employers) and the after-tax amount earned by laboratory aides (that is, the wage received by workers minus any taxes collected from the workers). After-Tax Wage Paid by After-Tax Wage Received by Tax Proposal Quantity Hired Employers Workers Levied on Levied on (Number of (Dollars per hour) (Dollars per hour) Employers Workers workers) (Dollars per hour) (Dollars per hour) 2 0 ] ] ] o 2 ] ] ] 1 1 ] ] ] Suppose the government is concerned that laboratory aides already make too little money and, therefore, wants to minimize the share of the tax paid by employees. Of the three tax proposals, which is best for accomplishing this goal? () The proposal in which the entire tax is collected from workers () The proposal in which the tax is collected from each side evenly () The proposal in which the tax is collected from employers () None of the proposals is better than the others