a. If the government places a tax on land users, what will happen to the quantity of land supplied, if thesupply of land is costless? What will happen to land rent?
b. How will your answers to Part a. change if there are differential rents in the absence of the government tax?

Question

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The Answer of a. If the government places a tax on land users, what will happen to the quantity of land supplied, if thesupply of land is costless? What will happen to land rent?
b. How will your answers to Part a. change if there are differential rents in the absence of the government tax?

A If the Government Places a Tax on Land Users