Since the supply of undeveloped land is relatively inelastic a tax on undeveloped land would generate ?

A. a small deadweight loss and the burden of the tax would fall on the renter
B. a large deadweight loss and the burden of the tax would fall on the landlora
C. a large deadweight loss and the burden of the tax would fall on the renter.
D. a small deadweight loss and the burden of the tax would fall on the landlord

Correct Answer: a small deadweight loss and the burden of the tax would fall on the landlord ✔

Last Updated: June 18, 2019