Monthly rent New supply with a $100 tax $600 $560 Initial supply $500 – $460 – .. Demand 3,000 8,000 10,000 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: O A. consumers pay the whole amount of the tax. O B. consumers and landlords split the tax. O C. landlords pay the whole amount of the tax. OD. There is not sufficient information.
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