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Exhibit 29-4 ​

Question 125

Multiple Choice

Exhibit 29-4
​
Exhibit 29-4 ​ -Refer to Exhibit 29-4. Assume a per acre tax, T, is imposed on land use. The rent (per acre) of land services will A) rise from R<sub>1</sub> to R<sub>1</sub> + T. B) fall from R<sub>1</sub> to R<sub>1</sub> - T. C) remain unchanged at R<sub>1</sub>. D) fall to 0.
-Refer to Exhibit 29-4. Assume a per acre tax, T, is imposed on land use. The rent (per acre) of land services will


A) rise from R1 to R1 + T.
B) fall from R1 to R1 - T.
C) remain unchanged at R1.
D) fall to 0.

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