Suppose the Supply of Ocean Front Property in San Diego

question 114

Multiple Choice

Suppose the supply of ocean front property in San Diego is perfectly inelastic. Any increases in demand for this property increases the

• A) economic rent.
• B) opportunity cost of land owners.
• C) present discounted value.
• D) real interest rate.

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Definitions:

Imported

Goods or services brought into one country from another for sale or use.

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good or service and what they actually receive due to higher market prices.

Tariff

A tax imposed by a government on imported or exported goods, often used to protect domestic industries or to generate revenue.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and the actual price they pay.