THE INCIDENCE OF TAXES 121 



standing on D' D" N" will be much greater than that on D' D N, 

 for the third dimension will also have increased ; the average 

 rate of interest and the trade profit of the tenant will have in- 

 creased, and it is highly probable that the volume standing on 

 D" M" N" may be greater than that which stood on D N M ; but 

 this is by no means certain. It might at first be actually smaller. 

 In all probability, however, the demand curve is very nearly 

 vertical, a small increase of profit tempting a largely increased 

 investment of capital in farming. If this be so, then the land- 

 lord also reaps considerable benefit from the improvement, for if 

 the farmers were contented with nearly the same rate of interest 

 as before, the solid standing on D R N N" D" which he gains 

 would be larger than the solid on D R M" M which he loses ; 

 moreover, the volume on R N M", which he retains, is increased. 

 Labourers and consumers also gain. 



