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Because the Supply of Land Is Perfectly Inelastic,when Governments Tax

Question 142

Multiple Choice

Because the supply of land is perfectly inelastic,when governments tax land,the tax


A) creates a deadweight loss because the supply is fixed.
B) decreases both the demand for and the supply of land.
C) creates no deadweight loss because the equilibrium quantity is the same as without the tax.
D) increases the supply of land because the landlord pays all of the tax.
E) decreases the supply of land because the landlord pays all of the tax.

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