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When the Supply Curve of Labor Is Perfectly Inelastic and a Social

Question 83

Multiple Choice

When the supply curve of labor is perfectly inelastic and a social security tax is collected partly from employers and partly from employees,the burden of the tax is:


A) entirely borne by the employees.
B) entirely borne by the employers.
C) borne by both the employers and the employees.
D) borne by the employers only if labor demand is elastic.

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