If the Tax Elasticity of Supply Is 0

question 126

Multiple Choice

If the tax elasticity of supply is 0.6 and tax rates increase by 10 percent,the quantity of labor supplied will

• A)Increase by 1.67 percent.
• B)Decrease by 1.67 percent.
• C)Increase by 6 percent.
• D)Decrease by 6 percent.