Lakeville is a small community that completely surrounds a scenic lake up north.Lakeville's zoning regulations require that residential lots have at least one hundred feet of frontage,or shoreline,on the lake.The total shoreline of the lake is 5,000 feet.
Assuming that the zoning regulations in Lakeville remain enforced,elasticity of supply of lakefront property is,
A)infinite at a quantity of 50.
B)greater than zero at quantities less than 50 and zero at quantity of 50.
C)less than zero at quantities through 100.
D)positive for all quantities.

Question

Quizplus · Accepted Answer

Since the demand is high,the price per lot would increase and the quantity supplied would also increase as there is incentive to build more homes.

Lakeville Is a Small Community That Completely Surrounds a Scenic