CENGAGE | MINDTAP Homework (Ch 06) Back to Assignment and Study Tools Attempts Keep the Highest / 2 Options 6. Who should pay the tax? Success Tips The following graph shows the labor market for research assistants in the fictional country of Collegia. The equilibrium wage is $10 per hour, and the equilibrium number of research assistants is 100. success Tips Suppose the government has decided to institute a $4-per-hour payroll tax on research assistants and is trying to determine whether the tax should be levied on the employer, the workers, or both (such that half the tax is collected from each side). dback Use the graph input tool to evaluate thes e three proposals. Entering a number into the Tax Levied on Employers field (initially set at zero dollars per hour) shifts the demand curve down by n Workers field (initially set at zero dollars per hour) shifts the supply curve up by t x wage for each tax proposal, adjust the amount in the Wage field until the quantity of labor manded. You will not be graded on any changes you make to this graph Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Research Assistants Wage (Dollars per hour) Labor Demanded Number of workers) 0 Number of workers Demand Shifter Supply Shifter WAGE (Dollars per hour) Demand Tax Levied on Tax Levied on Employers Dollars per hour) 40 80 50 100 120 140 160 180 200 LABOR (Number of workers) For each of the proposals, use the previous 9 of research assistants hired. Then compute the after-tax am paid by employers ( that is, the wage paid to workers plus any taxes collected from the employers) and the after-tax amount earned by research assistants (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) Suppose the government doesn't want to disco is employers from hiring research assistants and, therefore, wants to minimize the share of the tax paid by the employers. 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 Grade It Now Save & Continue Continue without saving