1. (20 points) Workers from varying backgrounds will have differing supply elasticity of labor. (a) (10 points) Using your economic intuition, consider two distinct population groups. Which group would you expect a higher supply elasticity of labor? To receive full credit, you must list two groups and explain your answer. (b) (5 points) On the other hand, payroll tax incidence is split down the middle between workers and firms. Suppose that the labor supply is relatively more elastic than the demand. If an additional tax is levied on the industry - who would bear more of the increased tax? Explain. (c) (5 points) Are undocumented workers more or less likely to respond in the labor market when the wage changes? Explain.