In a Labor Market in Which Demand Is Perfectly Elastic

question 31

Multiple Choice

In a labor market in which demand is perfectly elastic and supply is neither perfectly elastic nor perfectly inelastic,who bears a tax if the statutory incidence is placed on the firms?

• A) only the workers
• B) only the firms
• C) both the workers and the firms,although the workers bear more of the tax
• D) both the workers and the firms,although the firms bear more of the tax

---

Definitions:

Customers

Customers are individuals or entities that purchase goods or services from a business.

Mass Customization

A business strategy that combines the efficiency of mass production with the personalization of custom-made products, allowing for large-scale manufacturing of customized items.

Made-To-Order T-Shirts

Custom-designed t-shirts created according to the specific requirements of an individual customer, often involving personalized designs or sizes.

Online Customers

Individuals who purchase goods or services over the internet.