of some Doctrines of Political Econoim/. 209 



investigation, on the supposition that the supply is perfectly un- 

 afTected by the tax. 



It may be observed also, that it results from our formulae, 

 that if the poorer soils be taxed at a lower proportional rate 

 than the average, the tax will so far fall on rent, and be 

 taken from price. In this case, k„ is less than A-. If the poorest 

 soil pay no tax, the whole of the tax levied on other soils falls 

 on rent, even on the supposition above-mentioned. In this 

 case, kn = o. 



17. Next let it be supposed, that there is no soil in cultivation 

 of the limiting" quality. Then the price will remain unaltered 

 by the imposition of the tax, for the demand .and the supply 

 each remains unaltered, and therefore the price. The cost of pro- 

 duction does not affect prices in this case, because there is nothing 

 produced which barely pays the cost of production with profits. 

 Therefore p' = p, u = o, v = o. 



Diminution of rent = at = whole tax. 

 In this case, the tax falls wholly on rent. 

 This is the case in which the produce of every acre, being 

 more than sufficient to pay exjjenses and profits, and thus 

 leaving a rent, there is yet no poorer land which can be taken 

 into cultivation, and no method known of applying additional 

 capital to old land, with diminished, but sufficient returns. 

 And in this case, it appears that all taxes which are taken from 

 the produce of the land, are ultimately paid entirely by the land- 

 lord. 



18. Let us now return to the case in which there is a cer- 

 tain quality of land which only just pays expenses and profits, 

 and which is therefore liable to be thrown out of cultivation 

 by a tax, or if kept in cultivation, affects prices. Let a„ be the 

 quantity of this land, and r„ its rate of produce, supposing it, 

 as a sufficiently close approximation at present, to be of uniform 



Vnl. III. Part I. D D 



