As the price of land decreases along its demand curve, the relative price of land
A) increases because the prices of other resources have also decreased.
B) decreases because the prices of other resources have also decreased.
C) increases because the prices of other resources have increased.
D) decreases because the prices of other resources are held constant.
E) remains constant because the prices of other resources also increase.

Question

Quizplus · Accepted Answer

The relative price of land decreases along its demand curve because the prices of other resources are held constant, making land relatively cheaper compared to other resources.

As the Price of Land Decreases Along Its Demand Curve