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Assume you have two adjacent regions that are identical in every economic aspect - supply of land, incomes, population, etc...However, now assume that Region A
Assume you have two adjacent regions that are identical in every economic aspect - supply of land, incomes, population, etc...However, now assume that Region A introduces a property tax while region B does not. Using public finance theory and making any assumptions you feel are necessary, explain the economic effects of the property tax in both regions. Graphs and/or equations might be useful in answering this question.
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