1718EconomicsMedium
Since the supply of undeveloped land is relatively inelastic a tax on undeveloped land would generate?
Aa small deadweight loss and the burden of the tax would fall on the landlord
Ba large deadweight loss and the burden of the tax would fall on the renter.
Ca small deadweight loss and the burden of the tax would fall on the renter
Da large deadweight loss and the burden of the tax would fall on the landlora
Correct answer
A. a small deadweight loss and the burden of the tax would fall on the landlord
Explanation
The correct answer is a small deadweight loss and the burden of the tax would fall on the landlord.