Suppose the Supply of Labor Is More Inelastic Than the Demand

question 60

Multiple Choice

Suppose the supply of labor is more inelastic than the demand for labor.Then,a Social Security tax imposed on employers

• A) shifts the demand curve for labor leftward.
• B) lowers the wage rate received by workers.
• C) leads to the workers paying more of the tax than the employers.
• D) Only answers B and C are correct.
• E) Answers A, B, and C are correct.

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