Suppose the supply of land is infinitely inelastic and the demand for
Suppose the supply of land is infinitely inelastic and the demand for land is downward sloping but inelastic at the current equilibrium. If the supply curve shifts rightward (e.g.
, previously unusable land is cleared for production), what happens to the aggregate economic rents in this market? A) Decrease
B) Increase
C) Remain the same
D) We do not have enough information to answer this question.
ANSWER
A
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.