Related to the Economics in Practice on P

Multiple Choice

Related to the Economics in Practice on p. 105: Researchers found that after a few years of a tax relief policy for foreigners, the fraction of foreigners in the top 0.5 percent of income earners in Denmark almost doubled. The researchers concluded that for this group of workers, labor supply seems to be

A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly inelastic