Property taxes are a classic example of a fixed cost. Typically, property taxes are a function of the commercial value of the land and (usually) buildings on the land. They don't rise or fall in the short run as the firms output changes, so they are a fixed cost.

As we know, a change in fixed costs doesn't change output for the firm or industry in the short run. The graph below shows the short run impact of an increase in property taxe or any fixed cost. All that happens in the short run is that total costs increase but since neither price nor marginal cost changes output doesn't change.

1. decrease for the firms and increase for the industry. Only a change in demand (which causes a change in market price) or variable cost can change firm and industry output in the short run. In the short run too, the change in output must be in the same direction for firm and industry, though they can be in different directions in the long run.
2. decrease for the firms and decrease for the industry. Only a change in demand (which causes a change in market price) or variable cost can change firm and industry output in the short run.
3. remain unchanged for both the firms and the industry.
4. increase for the firms and increase for the industry. Only a change in demand (which causes a change in market price) or variable cost can change firm and industry output in the short run.
5. increase for the firms and decrease for the industry. Only a change in demand (which causes a change in market price) or variable cost can change firm and industry output in the short run. In the short run too, the change in output must be in the same direction for firm and industry, though they can be in different directions in the long run.