With Regard to Tax Burdens, What Does the "Elasticity =

question 99

Multiple Choice

With regard to tax burdens, what does the "elasticity = escape" idea tell you?

• A) that the curve (between demand and supply) that is relatively more elastic will bear less of the tax burden
• B) that the curve (between demand and supply) that is relatively more inelastic will bear less of the tax burden
• C) that the curve (between demand and supply) that is relatively more elastic will escape the tax burden entirely
• D) that the ratio of the buyers' tax burden to the sellers' tax burden is always greater than 1

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Definitions:

Minimum-Wage Laws

Legislation that sets the lowest hourly wage rate that employers can legally pay their employees.

Minimum Wage

The lowest legal salary that employers can pay workers, set by government law or policy.

Labor Supplied

The total hours that workers are willing to work at a given wage rate, representing the workforce availability in the economy.

Labor Demanded

The total amount of workers that employers in the economy want to hire at a given wage level and time period.