Which of the following statements is true about equilibrium real rents net of inflation) in the space market over time?
A) An increase in demand will necessarily produce an increase in rents, but a decrease in demand will not necessarily produce a decrease in rents.
B) An increase in demand will not necessarily produce an increase in rents, but a decrease in demand will necessarily produce a decrease in rents.
C) An increase in supply will necessarily produce an increase in rents, but a decrease in supply will not necessarily produce a decrease in rents.
D) An increase in supply will not necessarily produce an increase in rents, but a decrease in supply will necessarily produce a decrease in rents.
Correct Answer:
Verified
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