If the labor supply curve is very elastic

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Reference no: EM13860980

If the labor supply curve is very elastic, a tax on labor:

a. has a large deadweight loss.

b. raises enough tax revenue to offset the loss in welfare.

c. has a relatively small impact on the number of hours that workers choose to work.

d. results in a large tax burden on the firms that hire labor.

Reference no: EM13860980

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