The Effect of the Personal Income Tax on the Amount

question 25

Multiple Choice

The effect of the personal income tax on the amount of labor employed in the economy is greatest when

• A)demand and supply are both relatively elastic.
• B)demand and supply are both relatively inelastic.
• C)demand is relatively inelastic and supply is relatively elastic.
• D)demand is relatively elastic and supply is relatively inelastic.
• E)both supply and demand do not exist.

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