Q
Since the supply of undeveloped land is relatively inelastic a tax on undeveloped land would generate ?
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A
A. A small deadweight loss and the burden of the tax would fall on the renter
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B
B. A large deadweight loss and the burden of the tax would fall on the landlora
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C
C. A large deadweight loss and the burden of the tax would fall on the renter.
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D
D. A small deadweight loss and the burden of the tax would fall on the landlord
Correct Answer:
D. D. A small deadweight loss and the burden of the tax would fall on the landlord
