Most labour economists believe that the supply of labour is less elastic than demand.This means:

Question

Quizplus · Accepted Answer

When the supply of labor is less elastic than demand, it means workers are less responsive to changes in wages than employers are to changes in the cost of labor. Therefore, most of the payroll tax burden falls on workers because they are less likely to reduce their labor supply in response to the tax, leading to them bearing a larger share of the tax burden.

Most Labour Economists Believe That the Supply of Labour Is