Related to the Economics in Practice on p.526: If the estate in the Chekhov play Uncle Vanya is earning 2 percent,yet a potential buyer wants to earn more than 2 percent,the sales price of the estate would have to

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If the estate is earning 2 percent, it means that its current value is such that the income generated from it equals 2 percent of its value. If a potential buyer wants to earn more than 2 percent, it means that they would be willing to pay less for the estate. This is because the higher the price paid for the estate, the lower the percentage return the buyer would receive on their investment. Therefore, the sales price of the estate would have to fall in order to satisfy the buyer's demand for a higher return.

Related to the Economics in Practice on P