We see permanent price differentials in land because
A)the demand for land is high
B)land has few uses
C)location is the inherent quality that often determines its value
D)real estate brokers are inefficient
E)land is not traded in free markets

Question

Quizplus · Accepted Answer

Permanent price differentials in land are mostly due to location being the inherent quality that determines its value. Different locations have different levels of demand, accessibility, and desirability, which affect the value of the land. This explains why two similar plots of land in different areas can have vastly different prices.

We See Permanent Price Differentials in Land Because