Demonstrate graphically how the price of land is determined, Business Economics

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Demonstrate graphically how the price of land is determined

From David Colander's 9th edition Macroeconomics; Chapter 17, pg. 382, Questions and Excercises #3

Demonstrate graphically how the price of land is determined.

a. Show the effect of a tax on that land.

b. Explain why that tax won’t cause the price of land to rise.

c. Based on this analysis, would you support more

extensive use of land and property taxes in the United States? Why or why not?

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