Related to the Economics in Practice on p. 522: If the estate in the Chekhov play Uncle Vanya is earning 2 percent, yet a potential buyer wants to earn more than 2 percent, the sales price of the estate would have to

Question

Quizplus · Accepted Answer

If the potential buyer wants to earn more than the current 2 percent return on the estate, they will not be willing to pay the current sales price. Therefore, the sales price will have to fall in order to entice the buyer to purchase the estate.

Related to the Economics in Practice on P