A Tax Elasticity of Supply Equal to

question 114

Multiple Choice

A tax elasticity of supply equal to .21 indicates that

• A) Employers will not hire any workers if tax rates increase.
• B) Employers will hire more workers if tax rates increase.
• C) Workers will not cut back on the number of hours worked if tax rates increase.
• D) Workers will cut back on the number of hours worked if tax rates increase.

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