When the supply of land is perfectly inelastic,the economic burden of an annual tax on land

Question

Quizplus · Accepted Answer

When the supply of land is perfectly inelastic, it means that the quantity of land available does not change regardless of the price. Therefore, a tax on land cannot be passed on to future buyers through higher prices or split between present and future landowners, as the supply of land does not adjust to the tax. The economic burden of the tax falls entirely on the people who owned land when the tax was imposed, as they cannot escape the tax by altering the supply of land.

When the Supply of Land Is Perfectly Inelastic,the Economic Burden