If the supply of land is fixed, a tax on land would be paid:
A)entirely by the landowners
B)entirely by the renters or users of the land
C)partly by landowners and partly by land users
D)only by workers

Question

Quizplus · Accepted Answer

If the supply of land is fixed, a tax on land would be paid entirely by the landowners because they have no choice but to pay the tax as the supply of land is fixed and they cannot decrease their supply to avoid the tax. Therefore, they will pass on the tax burden to the renters or users of the land by increasing the rent or price of the land.

If the Supply of Land Is Fixed, a Tax on Land