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The Next Questions Refer to the Following

Question 24

Multiple Choice

The next questions refer to the following.
Suppose the supply of labor is W - t = 10H, where W is the gross wage, t is the tax (in dollars) , and H is labor hours. The demand for labor is W = 120 - 2H.
-If the tax doubles to $24,the distortion


A) declines
B) remains the same
C) doubles
D) triples
E) quadruples

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