If the elasticity of supply of labor is low and the elasticity of demand for labor is high, then workers pay most of the Social Security tax levied on labor.

Question

Quizplus · Accepted Answer

When the elasticity of supply is low, workers are less responsive to wage changes, meaning they bear more of the tax burden. High elasticity of demand means employers are more responsive, shifting the tax burden to workers.

If the Elasticity of Supply of Labor Is Low and the Elasticity