Under an upward sloping supply curve for land, the economic rents to land ________ as the demand for land shifts rightward.
A) decrease
B) increase
C) remain the same
D) We do not have enough information to answer this question.

Question

Quizplus · Accepted Answer

Economic rent is the difference between the amount paid for the use of the land and the minimum amount required to bring that land into production. An upward sloping supply curve for land means that as the demand for land increases, the price for land also increases. As a result, the economic rent to landowners increases because they can charge more for the use of their land. Therefore, the correct answer is B, which indicates that economic rents to land increase as demand for land shifts rightward.

Under an Upward Sloping Supply Curve for Land, the Economic