A person says, "Prices (for meals at restaurants, clothes, taxis, etc.) are high in Paris because land rents are so high in Paris." This person

Question

Quizplus · Accepted Answer

The statement confuses cause and effect by suggesting high land rents directly cause high prices for various services and goods, when in fact, high prices can also lead to high land rents. Additionally, it incorrectly assumes land rents are price determining rather than being determined by prices, reflecting a misunderstanding of the relationship between land rents and market prices.

A Person Says, "Prices (For Meals at Restaurants, Clothes, Taxis