Related to the Economics in Practice on p. 102: Researchers found that a ten percent reduction in the tax rate induced a twenty percent increase in migration in Europe. This indicates that labor migration in Europe is
A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly inelastic

Question

Quizplus · Accepted Answer

The fact that a small change in tax rates led to a large change in migration suggests that the demand for labor in different regions is relatively elastic, meaning that workers are responsive to changes in incentives such as tax rates.

Related to the Economics in Practice on P