In a competitive market, a tax on wage income falls wholly on labour if :
A. Labour supply is inelastic
B. Labour supply is elastic
C. Labour supply is highly elastic
D. Demand for products has infinite elasticity
Answer:A
In a competitive market, a tax on wage income falls wholly on labour if :
A. Labour supply is inelastic B. Labour supply is elastic C. Labour supply is highly elastic D. Demand for products has infinite elasticity