If people value clean air over dirty air,and if the air in city A is cleaner than the air in city B (by a wide margin),then we would expect that ____________________,all else equal between the two cities.
A) comparable houses in the two cities will sell for the same price.
B) comparable house in A will be more expensive than comparable house in B.
C) comparable house in B will be more expensive than comparable house in A.
D) There is not enough information to answer the question.

Question

Quizplus · Accepted Answer

People value clean air, so if City A has substantially cleaner air than City B, real estate in City A will be more expensive than comparable real estate in City B. This is due to the increased demand for clean air in City A, which will drive up the prices of homes in that region.

If People Value Clean Air Over Dirty Air,and If the Air