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the following calculator shows the labor market for research assistants in the fictional country of universalia. The equilibrium wage is $10.00 per hour, and the

the following calculator shows the labor market for research assistants in the fictional country of universalia. The equilibrium wage is $10.00 per hour, and the equilliubrium number of research assistants is 250.

Supposte hte government has decided to institute a $4 per hour payroll tax on research assistants and is trying to determine the optimal way to do so. Some argue that the employer should pay the entire tax, while others argue that the tax should fall on workers. Still others argue that the fairest way to institute the tax is to have the employer and the worker each pay half the tax.

Tax Proposal Wage Quantity hired Wage+employer Tax Wage-Employer Tax

(employer pay $4

workers pay $0)

(Employer pay $0

workers pay $4)

(employers pay $2

workers pay 2$)

of the three tax proposal, which is the most favorable to workers? a. the proposal in which each side pays haf the tax most favorable.

b.the proposal in which employers pay the entire tax is the most favorable

c. the proposal in which workers pay the entire tax

d. doesnt matter

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