From the Point of View of the Locality, Increasing Property

question 6

Multiple Choice

From the point of view of the locality, increasing property taxes:

• A) increases the price of locally produced goods.
• B) decreases income of owners of land in the associated community.
• C) does not affect buyers of locally produced goods fro outside of the community.
• D) both a and b

---

Definitions:

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to market balance.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price.

Supply and Demand

Fundamental economic concepts where supply represents how much the market can offer, and demand represents how much of a product or service is desired by buyers.

Supply and Demand

Economic principles stating that the price of a good is determined by its availability (supply) and consumers' desire to purchase it (demand).