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12. Efficiency Loss from impowsing Taxes on Wages is L = t 2 sWH. where = (%H )/(%W): Elasticity of Labor Supply The lower the

12. Efficiency Loss from impowsing Taxes on Wages is

L = t2sWH.

where

= (%H )/(%W): Elasticity of Labor Supply

The lower the elasticity , the ......... the efficiency loss

a.

same

b.

higher

c.

smaller

d.

double

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