A Tax Elasticity of Supply Equal to 0

question 31

Multiple Choice

A tax elasticity of supply equal to 0.21 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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