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The Elasticity of Supply of Land Is Zero

Question 2

Multiple Choice

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


A) have a positive excess burden.
B) be shifted forward to tenants.
C) be paid entirely by landlords.
D) have zero excess burden.
E) both c and d

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