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An increase in the income tax rate leads to a large increase in deadweight loss if ________.

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7 years ago

An increase in the income tax rate leads to a large increase in deadweight loss if ________.

An increase in the income tax rate leads to a large increase in deadweight loss if ________.
A) the labor supply curve is highly elastic
B) the labor supply curve is perfectly inelastic
C) the labor demand curve is elastic
D) the labor demand curve is perfectly inelastic

Textbook

Microeconomics

Edition: 1^st

Authors: Acemoglu, Laibson, List

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