Suppose the government designates certain areas within a community to be "wetlands," making it illegal to build on the land. What happens to land not classified as "wetlands" within the community?

Question

Quizplus · Accepted Answer

(i) and (iii) are both possible outcomes. The designation of certain areas as wetlands does not necessarily impact the land not classified as wetlands. The restrictions on the wetland areas could potentially increase the value of the non-wetland areas by limiting the supply of land available for building. Additionally, the government may incentivize development on non-wetland areas as a way to preserve the wetlands.

Suppose the Government Designates Certain Areas Within a Community to Be