According to Ricardo's explanation of land rent, what happens when the demand for land increases?
A) The supply curve shifts to the right just enough to keep the price per acre constant.
B) Revenues to owners of land increase but economic rent declines.
C) The amount of economic rent stays constant, constrained by a perfectly inelastic supply curve.
D) Both revenues to owners of land and economic rent increase.
Correct Answer:
Verified
Q1: Economic rent applies to
A) land only and
Q2: Q4: For an individual who has special talent Q4: Economic rent is any payment Q6: Economic rent is defined as Q7: Ricardo's assumption for economic rents for land Q9: Pure economic rent is a payment to Q11: Pure economic rent is Q12: World-class models receive significant economic rents because Q12: A dedicated teacher loves being in the
A) received by
A) any payment
A) a payment to
A)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents