The Elasticity of Supply of Land Is Zero

question 10

Multiple Choice

The elasticity of supply of land is zero.A tax on land results only in an income effect to landlords.It then follows that a 10 percent tax on land rents will:

• A)have a positive excess burden.
• B)be paid entirely by landlords.
• C)have zero excess burden.
• D)both (b) and (c) are correct.

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