CEeLOREB Y O > In a labour market, labour demand is very (but not perfectly-) inelastic, and the labour supply is very (but not perfectly-) elastic. The market wage is W per worker. The government legislates a payroll tax (T) of $50 imposed on employees (to be paid by each worker). The tax is enforced to increase government revenue. (i) What is the impact of the payroll tax on the employee wages and employment in this case? Discuss briefly (5 marks). Support your answer with a diagram of the demand and supply of labour in this market before and after the payroll tax legislation. Note: Remember to label and define the axes in the diagram. (4 marks)