Use the graph and following information to answer each of the questions.

Q1: The market below shows the labor market without any taxes imposed. Suppose the government imposes a $500 per worker income tax on the market and workers are legally responsible for paying the $500 to the government.

Monthly Earnings Labor Market $4,500 $4,250 en Supply $4,000 $3,750 $3,500 $3,250 $3,000 $2,750 $2,500 Demand $2,250 $2,000 - - - $1,750 $1,500 $1,250 $1,000 $750 $500 $250 $0 0 200 400 600 L1 Lo 800 1000 1200 1400 1600 1800 2000 Number of Workers (millions)Monthly Earnings Labor Market $4,500 $4,250 $4,000 $3,750 $3,500 $3,250 $3,000 $2,750 $2,500 Demand $2,250 $2,000 $1,750 $1,500 $1,250 $1,000 - - $750 $500 $250 $0 0 LO 200 400 LI 600 800 1000 1200 1400 1600 1800 2000 Number of Workers (millions)