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Please help me with this question. #5. (15 marks) The labour market has the following demand and supply L = 320 8w and L :

Please help me with this question.

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#5. (15 marks) The labour market has the following demand and supply L = 320 8w and L : 80 + 2w . The government introduces a payroll tax t : $10 payable by employers. (a) (b) (0) (d) (e) If this payroll tax is perceived as a benet-linked tax, what are the equilibrium wage and number of workers employed? What is the economic incidence of this tax on employees? If this payroll tax is perceived as a benet-linked tax and there is a minimum wage of $20, what is the employment level now? What is the economic incidence of this tax on employees? If this payroll tax is perceived as an activity-linked tax, what are the equilibrium wage and number of workers? What is the economic incidence of this tax on employees? If this payroll tax is perceived as an activity-linked tax and there is a minimum wage of $20, what is the employment level now? What is the economic incidence of this tax onl employees? Compare the outcomes from (b) and (d). Does it make sense to use the minimum wage when the tax is benet-linked? What about when the tax is activity-linked? Briey explain

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