Asked by Claudia Gonzalez on Jul 25, 2024

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As the demand for land falls

A) rents rise and more marginal land comes into use.
B) rents fall and less marginal land is used.
C) rents rise and less marginal land is used.
D) rents fall and more marginal land comes into use.

Marginal Land

Land that is of poor quality for agriculture and unlikely to produce a profitable yield without significant investment in improvements.

Rents

Payments made for the use of property or land, or in economic theory, the excess returns to a factor of production over its opportunity cost.

  • Understand the dynamics of rent, land usage, and their economic implications.
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Verified Answer

MN
Mahnoor NadeemJul 31, 2024
Final Answer :
B
Explanation :
When demand for land falls, rents decrease because the value of using the land decreases. Consequently, less marginal land is used because it becomes less economically viable to cultivate or develop lower-quality land.