2. If land becomes more valuable in residential use than in commercial use a. th

Question

2. If land becomes more valuable in residential use than in commercial use

a. the supply of land available for commercial use should decrease and the supply of land for residential use should increase.

B. there can be no change in the allocation of land because land is fixed in supply.

c. there will be no change in the allocation of land, as there is no responsiveness to price changes by suppliers of land.

D. the supply of land for commercial use will become perfectly elastic and the supply of land for residential use will become perfectly inelastic.

Explanation / Answer

a) is the only one that makes sense.

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.