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A Tax on Labor Causes a Smaller Drop in Equilibrium

Question 136

Multiple Choice

A tax on labor causes a smaller drop in equilibrium employment when:


A) the labor demand curve is flat than when it is steep.
B) the labor demand curve is steep than when it is flat.
C) the labor supply curve is steep than when it is flat.
D) the labor supply curve is flat than when it is steep.

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