The property tax on a rent house owned by Mr.Janey increased by $1,200 this year.Mr.Janey increased the monthly rent charged to his tenant,Ms.Lacey,by $45.Who bears the incidence of the property tax increase?

Question

Quizplus · Accepted Answer

The incidence of the property tax increase is shared by both Mr. Janey and Ms. Lacey. Mr. Janey bears the incidence because he has to pay the increased property tax. Ms. Lacey bears the incidence because she has to pay the increased rent.

The Property Tax on a Rent House Owned by Mr