Unlike the supply of raw land,the supply of improvements
A) is perfectly inelastic.
B) has an elasticity that is greater than zero.
C) cannot be taxed,even if an attempt were made to tax it.
D) is exempt from taxation under current law.

Question

Quizplus · Accepted Answer

The supply of improvements has an elasticity that is greater than zero, meaning it can be influenced by factors such as changes in the cost of materials or labor, as well as changes in demand for the property. This is unlike the supply of raw land, which is generally considered to be perfectly inelastic. Choices A, C, and D are incorrect because they do not accurately reflect the characteristics of the supply of improvements.

Unlike the Supply of Raw Land,the Supply of Improvements