Monthly rent $600 $560 $500 $460 3,000 8,000 10,000 New supply with a $100 tax OA. consumers pay the whole amount of the tax OB. consumers and landlords split the tax. OC. landlords pay the whole amount of the tax. OD. There is not sufficient information. Initial supply Demand Number of apartments Figure 6.8 Refer to Figure 6.8. Suppose that your city imposes a tax of $100 per apartment and the supply curve is a vertical line at Q-10,000. Then:

Monthly rent $600 $560 $500 $460 3,000 8,000 10,000 New supply with a $100 tax OA. consumers pay the whole amount of the tax OB. consumers and landlords split the tax. OC. landlords pay the whole amount of the tax. OD. There is not sufficient information. Initial supply Demand Number of apartments Figure 6.8 Refer to Figure 6.8. Suppose that your city imposes a tax of $100 per apartment and the supply curve is a vertical line at Q-10,000. Then:

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 6CQQ

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