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Suppose in the Market for Labor That the Labor Supply

Question 23

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Suppose in the market for labor that the labor supply curve is perfectly inelastic.This would mean that the supply curve is vertical.Furthermore,suppose that demand is normal and downward sloping.Your textbook has explained that unemployment taxes are paid entirely by the employer (demanders).Who actually pays the tax in the scenario described above?

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The suppliers of labor (employ...

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