If demand for land increases,the rental price ________ and the equilibrium amount of land ________.
A) increases; falls
B) decreases; increases
C) increases; increases
D) decreases; stays the same
E) increases; stays the same

Question

Quizplus · Accepted Answer

When demand for land increases, the rental price increases due to higher demand. However, the supply of land is fixed, so the equilibrium amount of land stays the same.

If Demand for Land Increases,the Rental Price ________ and the Equilibrium