Taylor Performs Services for Jonathan on a Regular Basis

question 120

Essay

Taylor performs services for Jonathan on a regular basis. There exists considerable doubt as to whether Taylor is an employee or an independent contractor.
a. What can Jonathan do to clarify the matter?
b. Suppose Jonathan treats Taylor as an independent contractor but Taylor thinks she is an employee. What is Taylor's recourse, if any?

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Definitions:

Shortage/Surplus

A market condition where the quantity demanded is greater than the quantity supplied (shortage) or the quantity supplied is greater than the quantity demanded (surplus).

Price Floor

A government or group-imposed limit that prevents prices of goods or services from falling below a certain level.

Shortage/Surplus

A condition in a market where the quantity demanded is greater or less than the quantity supplied at the current price.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with all other things being equal.