-Suppose We Acquire the Technology Necessary to Colonize the Moon

question 19

Essay

-Suppose we acquire the technology necessary to colonize the moon and 3 billion acres are made available to the general population.The figure above represents the supply and demand for land on the moon.
a.Suppose the government imposes a $1,000 dollar per acre tax on land income.What is the before-tax rent and what is the after-tax rent?
b.How much is the deadweight loss associated with this tax?

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Definitions:

Indefinite Period

A time span without a specified end date.

Merger Clause

A contract clause providing that the written contract is the complete expression of the parties’ agreement. Also called integration clause.

Integration Clause

A provision in a contract that declares it to be the complete and final agreement between the parties, superseding all prior discussions or agreements.

Statute of Frauds

A legal principle requiring certain types of contracts to be executed in writing and signed by all parties to be enforceable.