Econ 1010 Micro -The 19th century economist Henry George
Homework Number 7Econ 1010 MicroName:1. The 19th century economist Henry George argued that the government should levy a sizabletax on land, the supply of which he took to be completely inelastica. George believed that economic growth increased the demand for land and made richlandowners richer at the expense of the tenants who made up the demand side of themarket. Show this argument on an appropriately labeled graph.b. Who bears a burden of a tax on land-The owners of land or the tenants on the land?Explain.2. After economics class one day, your friend suggests that taxing food would be a good way toraise revenue because the demand for food is quite inelastic. In what sense is taxing food a“good” way to raise revenue? In what sense is it not a “good” way to raise revenue?
