Take into consideration the general-equilibrium view of the property tax's building code. Since 2016, a Vacant Homes Tax (Vacancy Tax) of 1% of the property's valuation has been placed in Los Angeles. Assume that the vacancy tax increasing the supply of buildings in Los Angeles. Following the tax model for state municipalities, we expect a fixed supply of land, a mobile supply of capital, with ideally mobile users.

Questions

A) Classify (explain) & describe the price implications for Los Angeles landowners.

B) Identify & describe the price implications for the other city's structure owners.

C) Identify & describe the price implications for Los Angeles building owners

D) identify the price effects of landowners in the other city and describe them with a clear explanation

E) Explain the relocation of buildings between Los Angeles & the other city.