Refer to the graph above to answer this question.Which of the following statements is correct? A)The supply of land is perfectly elastic. B)The shift from D₂ to D₃ illustrates a decrease in demand. C)D₁,D₂ and D₃ are all perfectly inelastic demand curves. D)The rent is demand-driven. E)The supply of land is rent-driven.

Question

Quizplus · Accepted Answer

The rent is demand-driven because changes in demand (shifts in the demand curve) affect the rent level, as shown by the shift from D2 to D3.

Refer to the Graph Above to Answer This Question