Determine whether the tax should be levied on the


The following graph shows the labor market for research assistants in the fictional country of Universalia. The equilibrium wage is $10 per hour, and the equilibrium number of research assistants is 200.Suppose the government has decided to institute a $6-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 each pays half the tax).

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Econometrics: Determine whether the tax should be levied on the
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