A Restaurant Owns the Land on Which It Is Located

A restaurant owns the land on which it is located, a small piece of property in the center of a city that has a growing population. The restaurant owner does not want to change locations, so he has put as many tables in the restaurant as possible without making customers feel crowded. The restaurant owner will

A) earn greater rent due to growing demand and limitations on supply.
B) increase the quantity of meals supplied as the demand grows, earning higher profit from the larger quantity sold.
C) face higher costs and lower rents due to the growing population around him, which will increase demand for restaurant meals.
D) earn lower rent because the return to land will fall.