If the tax elasticity of supply is 0.6 and tax rates increase by 10 percent,the quantity of labor supplied will

Name: If the tax elasticity of supply is 0.6 and tax rates increase by 10 percent,the quantity of labor supplied will
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Quizplus · Accepted Answer

The tax elasticity of supply measures the responsiveness of the quantity supplied to changes in tax rates. With an elasticity of 0.6, a 10% increase in tax rates will lead to a 6% decrease in the quantity of labor supplied (0.6 * 10% = 6%).

If the Tax Elasticity of Supply Is 0