Refer to the Graph Above to Answer This Question

question 98

Multiple Choice

Refer to the graph above to answer this question.Which of the following statements is correct?

• A)The supply of land is perfectly elastic.
• B)The shift from D₂ to D₃ illustrates a decrease in demand.
• C)D₁,D₂ and D₃ are all perfectly inelastic demand curves.
• D)The rent is demand-driven.
• E)The supply of land is rent-driven.

---

Definitions:

Tax

Mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund public expenditures.

Competitive Market

A market in which there are many buyers and sellers of the same good or service, none of whom can influence the price at which the good or service is sold.

Taxi Rides

Services offered by vehicles, typically cars, for hire to transport individuals from one location to another, based on a fare.

Excise Tax

A tax imposed on specific goods, services, or activities, often with the intention to reduce their consumption or generate revenue.