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\\ 4 I Suppose labor supply is given by w = 15 + E and labor demand is given by w = 25 E where 1:) denotes the hourly wage rate and E denotes hourly employment. (*1) (b) Calculate the equilibrium wage and employment level. (5 points) Now suppose that, in addition to the wage, rms have to pay a payroll tax of $2 per hour per worker. Calculate the equilibrium wage and employment level with the payroll tax. (5 points) Suppose now that, instead of rms, workers are the ones required to pay the same payroll tax. Calculate the equilibrium wage and employment level with the payroll tax. [5 points) How are equilibrium employment and wages you found in parts (b) and (6) related? (5 points) How are rms' hiring costs and workers' takehome pay found in parts (b) and (c) related? How would you interpret this result? (5 points)