Explore the market for land and then answer the question. When the government raises the tax rate on land income, what do land owners do? Land owners OA. decrease the land they use and pay the tax OB. pay more tax and receive less after-tax income OC. sell some land and pay less tax OD. increase the rent on land and pay more tax Rent (dollars per year) 1,500 1,000 600 0 Tax rate Land supply 250 Perfectly inelastic supply Land demand 500 Land (billions of acres)
Explore the market for land and then answer the question. When the government raises the tax rate on land income, what do land owners do? Land owners OA. decrease the land they use and pay the tax OB. pay more tax and receive less after-tax income OC. sell some land and pay less tax OD. increase the rent on land and pay more tax Rent (dollars per year) 1,500 1,000 600 0 Tax rate Land supply 250 Perfectly inelastic supply Land demand 500 Land (billions of acres)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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