If Land Becomes More Valuable in Residential Use Than in Commercial

question 162

Multiple Choice

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.

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