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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a.The before-tax rent is $3,000 per acre...View Answer
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