If the forestry sector decreases its demand for land, then the equilibrium land rental price will rise but the land made available for forestry will not change.

Question

Quizplus · Accepted Answer

If the demand for land by the forestry sector decreases, this would result in a decrease in the equilibrium land rental price, as there is less competition for the available land. Additionally, if the demand for land decreases, it would lead to a decrease in the amount of land used for forestry, as there is less incentive for landowners to rent their land to the forestry sector. Therefore, the statement is false.

If the Forestry Sector Decreases Its Demand for Land, Then