Graph Input Tool Market for Research Assistants 20 18 16 Wag

Graph Input Tool Market for Research Assistants 20 18 16 Wage Dollars per hour) Labor Demanded Number of workers) Sup Labor Supplied (Number of workers) 280 80 10 Demand Shifter Supply Shifter Tax Levied on 2Tax Levied on Emiployerer hour) Demand Dollars per hour) 0 40 80 120 160 200 240 280 320 360 400 LABOR (Number of workers)

Solution

When a tax of $2 is levied on employers, demand shifts down by $2, which implies employers will hire 180 workers, after tax wage paid by employers is $9 and after tax wage received by workers is $9

When a tax of $2 is levied on workers, supply shifts up by $2, which implies employers will hire 180 workers, after tax wage paid by employers is $9 and after tax wage received by workers is $9

When a tax of $1 is levied each on employers and workers, demand shifts down and supply shifts up by $1, which implies employers will hire 180 workers, after tax wage paid by employers is $9 and after tax wage received by workers is $9

Hence we see that none of the policy does better than the other.