7 For each of the proposals, use the previous graph to determine the new number of research assistants hired. Then compute the after-tax amountpaid by employers (that is, the wage paid to workers plus any taxes collected from the employers) and the after-tax amount earned by researchassistants (that is, the wage recelved by workers minus any taxes collected from the workers).After-Tax Wage Received byAfter-Tax Wage Paid byEmployersTax ProposalQuantity HiredWorkersLevied onLevied on(Number of(Dollars per hour)(Dollars per hour)EmployersWorkersworkers)(Dollars per hour)(Dollars perhour)2.400108.24001040010Suppose the government doesn't want to discourage employers from hiring research assistants and, therefore wants to minimize the share of the taxpaid by the employers. or the three tax proposals, which is best for accomplishing this goal?O The proposal in which the entire tax is collected from workersO The proposal in which the tax is collected from each side evenlyThe proposal in which the tax is collected from employersNone of the proposals is better than the others 6. Who should pay the tax?The following graph shows the labor market for research assistants in the fictional country of Universalia. The equilibrium wage is $10 per hour, andthe equilibrium number of research assistants is 200.Suppose the government has decided to institute a $2-per-hour payroll tax on research assistants and is trying to determine whether the tax shouldbe levied on the employer, the workers, or both (such that half the tax is collected from each side).Use the graph input tool to evaluate these three proposals. Entering a number into the Tax Levied on Employers field (initially set at zero dollars perhour) shifts the demand curve down by the amount you enter, and entering a number into the Tax Levied on Workers field (initially set at zero dollarsper hour) shifts the supply curve up by the amount you enter. To determine the before-tax wage for each tax proposal, adjust the amount in theWage 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 field, the graph and any corresponding amounts in each grey field will change accordingly.Graph Input Tool20Market for Research Assistants16IWage(Dolars per hour)416SupplyLabor Demanded(Number of workers)Labor Supplied(Number of workers)1440012Demand ShifterSupply10DemandTax Levied onEmployers(Doitars per hour)Tax Levied onWorkers(Dollars per hour)0.00D- Tax+.40 80 120 160 200 240 280 320 360 400WAGE (Dollars per hour)

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The labor market states the demand and supply of labor. In this market, the employees provide the…