In the market for land, if the supply of land is perfectly inelastic, an increase in the demand for land will result in a(n)

Question

Quizplus · Accepted Answer

If the supply of land is perfectly inelastic, an increase in the demand for land will not result in an increase in the quantity supplied of land or a decrease in the equilibrium price. Instead, it will result in an increase in economic rent, which is the payment made to landowners for the use of their land.

In the Market for Land, If the Supply of Land