Suppose the supply of ocean front property in San Diego is perfectly inelastic. Any increases in demand for this property increases the

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When the supply of ocean front property in San Diego is perfectly inelastic, it means that the supply cannot increase no matter how high the demand is. As a result, any increases in demand for this property will lead to an increase in the economic rent, which is the amount paid by tenants or buyers to landowners for the use of their property. The opportunity cost of landowners, present discounted value, and real interest rate are not directly affected by changes in demand for ocean front property.

Suppose the Supply of Ocean Front Property in San Diego