Explore the market for land and then answer the question. When the government raises the tax rate on land income, what do land owners do? Land owners OA. decrease the land they use and pay the tax OB. pay more tax and receive less after-tax income OC. sell some land and pay less tax OD. increase the rent on land and pay more tax Rent (dollars per year) 1,500 1,000 600 0 Tax rate Land supply 250 Perfectly inelastic supply Land demand 500 Land (billions of acres)

Explore the market for land and then answer the question. When the government raises the tax rate on land income, what do land owners do? Land owners OA. decrease the land they use and pay the tax OB. pay more tax and receive less after-tax income OC. sell some land and pay less tax OD. increase the rent on land and pay more tax Rent (dollars per year) 1,500 1,000 600 0 Tax rate Land supply 250 Perfectly inelastic supply Land demand 500 Land (billions of acres)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 18RQ: What is deflation?

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