If Land Is Reallocated or Switched from Agricultural Use to Recreational

question 416

Multiple Choice

If land is reallocated or switched from agricultural use to recreational use, then it is likely that

• A) food is not as important as recreation.
• B) the demand for food is less today than in previous decades.
• C) land earns a higher rent in recreational use than in agricultural use.
• D) the demand curve for land in the agricultural industry is shifting to the right.

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Definitions:

Equilibrium

A state in a market or economy where supply equals demand, and there is no incentive for change under current conditions.

Coconuts

Often used in economic models and examples, referring to a simplistic commodity to illustrate principles of trade, investment, or resource allocation.

Equilibrium

A condition or state in which economic forces such as supply and demand are balanced, resulting in a stable market.

Coconuts

A large tropical fruit with a hard shell, edible white flesh, and clear liquid, often used in food and drink preparations.