Many economists argue that a tax on apartment buildings is likely to reduce the supply of apartments,

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Many economists argue that a tax on apartment buildings is likely to reduce the supply of apartments, but that a tax on all land, including the land on which apartment buildings stand, will not reduce the supply of apartments. Can you explain the difference? How is this answer related to the answer to Test Yourself Question 3?
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Economics Principles and Policy

ISBN: 978-0538453653

12th edition

Authors: William J. Baumol, Alan S. Blinder

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