Author Question: If land becomes less valuable in residential use than in commercial use (Read 32 times)

burton19126 · **on:** Apr 19, 2019

Question 1

If the
MRP of land is greater than its price, a firm should

◦ use more land.
◦ use less land.
◦ try to increase the productivity of land.
◦ decrease the price it is willing to pay for land.

Question 2

If land becomes less valuable in residential use than in commercial use

◦ the supply of land available for commercial use should increase and the supply of land for residential use should decrease.
◦ there can be no change in the allocation of land because land is fixed in supply.
◦ there will be no change in the allocation of land, as there is no responsiveness to price changes by suppliers of land.
◦ the supply of land for commercial use will become perfectly inelastic and the supply of land for residential use will become perfectly elastic.

ryhom · **Reply #1 on:** Apr 19, 2019

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 56% of students answer this correctly