Albert Purchased a Tract of Land for $140,000 in 2015

question 148

Multiple Choice

Albert purchased a tract of land for $140,000 in 2015 when he heard that a new highway was going to be constructed through the property and that the land would soon be worth $200,000. Highway engineers surveyed the property and indicated that he would probably get $180,000. The highway project was abandoned in 2018 and the value of the land fell to $100,000. What is the amount of loss Albert can claim in 2018?

• A) $40,000
• B) $60,000
• C) $80,000
• D) $100,000
• E) None of the above

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Definitions:

Unity

In economic terms, unity can refer to a sense of agreement or cohesion among members of a market or organization, striving towards common goals or values.

Inelastic

Characterizes a condition in which the demand for a good or service is relatively unresponsive to changes in its price.

Elasticity of the Demand

A measure of how the quantity demanded of a good responds to a change in its price.

Technological Changes

Innovations or improvements in technology that enhance productivity, efficiency, or quality in the production of goods and services.