<p>From the graph, we see that labour supply is perfectly inelastic, while labour demand has a (negative as usual) non-zero elasticity.</p>
<p>When only one of the parties is perfectly inelastic, they perceive the full tax burden.</p>
<p>Therefore, workers will perceive all the tax burden, while employers will perceive none of it.</p>

CC BY-SA 4.0
2023-07-20T17:17:14.030Z
2023-07-20T17:17:14.030Z
Nicolas Torres
<p><a href="https://i.sstatic.net/yAj2a.jpg" rel="nofollow noreferrer"><img src="https://i.sstatic.net/yAj2a.jpg" alt="enter image description here" /></a></p>
<p>Can someone help me to explain this graph and who has tax incidence more?? In which, the vertical axis means wage per hour and the horizontal axis means the number of labor hours supplied per year. And how about in the long term?</p>

<microeconomics><labor-economics><taxation><labour>
Taxation and Labour Supply in the short-term
Huy Lê Thanh
# Taxation and Labour Supply in the short-term

(Asked by: username_0 on 2023-07-11)

[![enter image description here](https://i.sstatic.net/yAj2a.jpg)](https://i.sstatic.net/yAj2a.jpg)

Can someone help me to explain this graph and who has tax incidence more?? In which, the vertical axis means wage per hour and the horizontal axis means the number of labor hours supplied per year. And how about in the long term?

**Tags:** microeconomics, labor-economics, taxation, labour

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## 1 answers

### Answer by username_1 on 2023-07-20. Score: 2

From the graph, we see that labour supply is perfectly inelastic, while labour demand has a (negative as usual) non-zero elasticity.

When only one of the parties is perfectly inelastic, they perceive the full tax burden.

Therefore, workers will perceive all the tax burden, while employers will perceive none of it.


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