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The following graph shows the labor market for research assistants in the fictional country of Academia. The equilibrium wage is $10 per hour, and the

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The following graph shows the labor market for research assistants in the fictional country of Academia. The equilibrium wage is $10 per hour, and the equilibrium number of research assistants is 200. 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) Use the graph mput tool to evaluate these three proposals. Entering a number into the Tax Levied on Employers field (ontially set at zero dollars per hour) shifts the demand curve down by the amount you enter, and entering a number into the Tax Levied on Workers field (tally set at zero dollers per hour shifts the supply curve up by the amount you enter. To determine the before-tox wage for each tax proposal, adjust the amount in the Wage field until the quantity of labor supplied equals the quantity of labor demanded. You will not be graded on any changes you make to this graph, Note: Once you enter a value in a white hold, the graph and any corresponding amounts in each grey held will change accordingly. Graph Input Tool Market for Research Assistants 20 18 16 Wage (Dollars per hour Labor Demanded (Number of workers Supply 500 0 Labor Supplied Number of workers 34 12 Demand Shifter WAGE (Dollars per hour) 10 Supply Shifter Der and 0 Tax levied on Employers Yollar per hour Tax Levied on Workers Dollars per hour) 2 0 0 120 150 200 200 200 300 000 LABOR (Number of workers) For each of the proposals, use the previous graph to determine the new number of research assistants 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 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) 0 0 2 Suppose the government is concerned that research assistants 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 ude evenly The proposal in which the tax is collected from employers None of the proposals is better than the others

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