Question
Empirical studies have shown that price elasticity of labor supply of household heads is quite inelastic. A tax on employers has been set at a
Empirical studies have shown that price elasticity of labor supply of household heads is quite inelastic. A tax on employers has been set at a rate of 6% and it is said that this will be a contribution by employers to welfare of their workers. Who actually pays this tax? Why? Explain VERBALLY and GRAPHICALLY. Note: For your answer you can "exaggerate" price elasticity of labor supply and make it exactly equal to zero.
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International Business Competing in the Global Marketplace
Authors: Charles W. L. Hill
11th edition
1259578119, 978-1259578113
