Landowners Vote on a Growth Boundary Consider a city where the owners of vacant lots will vote on a proposed growth boundary. There are 12 vacant lots (one per owner), four inside the proposed boundary and eight outside the boundary. The initial price of land is $20 per lot. The growth boundary will reduce the price of land outside the boundary to zero. a. If the growth boundary doubles the price of lots within the boundary, the policy [increases, decreases] the total value of land from to b. If the growth boundary quadruples the price of lots within the boundary, the policy [increases, decreases] the total value of land from to The vote tally will be landowners in favor and opposed. c. Suppose the city combines the proposed growth boundary with a capital- gains tax equal to 80 percent of the change in the price of land. The revenue from the tax will be redistributed in equal shares to landowners outside the boundary. The tax per inside landowner would be and the com- pensation per outside landowner would be The vote tally will be landowners in favor and opposed.Landowners Vote on a Growth Boundary Consider a city where the owners of vacant lots will vote on a proposed growth boundary. There are 12 vacant lots (one per owner), four inside the proposed boundary and eight outside the boundary. The initial price of land is $20 per lot. The growth boundary will reduce the price of land outside the boundary to zero. a. If the growth boundary doubles the price of lots within the boundary, the policy [increases, decreases] the total value of land from to b. If the growth boundary quadruples the price of lots within the boundary, the policy [increases, decreases] the total value of land from to The vote tally will be landowners in favor and opposed. c. Suppose the city combines the proposed growth boundary with a capital- gains tax equal to 80 percent of the change in the price of land. The revenue from the tax will be redistributed in equal shares to landowners outside the boundary. The tax per inside landowner would be and the com- pensation per outside landowner would be The vote tally will be landowners in favor and opposed