What will happen to the market price

Reference no: EM132125722

Question: There are analogies between the value of a piece of land and that of a perpetuity. Assume that the land generates a fixed net income per year, i.e., the value of the crop it produces less the costs of production and maintaining the land's fertility. Then the market price of the land will approach that of a perpetuity. What will happen to that market price if annual property tax payments increase? If the current owners lose, can they recover any of that loss by selling it to a new owner?

Reference no: EM132125722

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