Lakeville Is a Small Community That Completely Surrounds a Scenic

question 95

Multiple Choice

Lakeville is a small community that completely surrounds a scenic lake up north.Lakeville's zoning regulations require that residential lots have at least one hundred feet of frontage,or shoreline,on the lake.The total shoreline of the lake is 5,000 feet.
There are currently 40 homes on the lake.If demand for lakefront property in Lakeville increased,

• A)the price of lakefront property would not change because there is excess supply.
• B)the quantity supplied of lakefront property would decrease because there is excess demand.
• C)the quantity supplied of lakefront property would be zero because there is no room for new residents.
• D)the quantity supplied of lakefront property would increase,and the price per lot would increase.

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Definitions:

Excise Tax

A tax levied on specific goods, services, or transactions, often included in the price of the product.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to produce and sell, holding other factors constant.

Excise Tax

A tax levied on specific goods, services, and activities, such as gasoline, alcohol, and tobacco.

Supply Curve

is a graphical representation of the relationship between the price of a good and the quantity of that good that suppliers are willing to produce and sell.