Foundations of Economics (8th Edition)
Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 19, Problem 9IAPA
To determine

To explain:

The difference in rental rate on land in Hong Kong with Chicago and the reason for commercial buildings are lower in Chicago than in Hong Kong.

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Grace owns a house. She can rent her house for two years to one tenant for a profit of $24,000 a year, or she can rent it to two tenants each year for a profit of $10,000 per tenant per year. Calculate the economic rent over the course of two years of renting to one tenant.
Economists Conclude that a tax on the revenues of firms will be shifted in part to consumers of the products of those firms in the form of higher prices. However, they believe that a tax on the rent of land usually cannot be shifted and must be paid entirely by the landlord. What explains the difference?
Research and briefly describe the trend of the home housing market in Australia over the past 30 years in no more than 100 words (Hint: Describe the pattern in this trend).
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