Who bears most of the burden of a mandate requiring employers to provide health insurance?
A) workers, since labor supply is less elastic than labor demand
B) employers, since labor demand is less elastic than labor supply
C) capital owners, since labor supply and demand elasticities are equal
D) the federal government, since the requirement is a federal mandate

Question

Quizplus · Accepted Answer

When labor supply is less elastic than labor demand, workers bear most of the burden because they have fewer alternatives and are less responsive to changes in wages.

Who Bears Most of the Burden of a Mandate Requiring