Interactive fixed-land tax-incidence diagram (two demand schedules) Land (units) Monthly land rent ($/sq ft) S: fixed stock of land Tax = 40¢ Dc: renters’ demand Ds: demand net of tax $1.00 $0.60 50 Price to renters Net-of-tax price to owner
Tax 40¢: renters still pay $1.00, owner nets $0.60, 50 units of land in use.
The whole tax comes out of the owner's rent; the renter's price and the acres never move.