Asked by Ashley Ochoa on Jun 12, 2024
Verified
Landowners will not receive any rent so long as:
A) there is any tax on land.
B) the supply and demand curves for land intersect.
C) the supply curve of land is perfectly inelastic.
D) the supply curve lies entirely to the right of the demand curve.
Rent
A periodic payment made by tenants to landlords for the use of land, a building, or other property.
Supply Curve
A curve that illustrates the supply for a product by showing how each possible price (on the vertical axis) is associated with a specific quantity supplied (on the horizontal axis).
Demand Curve
The demand curve is a graphical representation showing the relationship between the price of a good or service and the quantity demanded for a given period.
- Understand the significance and operations of rent in an economic framework.
- Clarify the features and economic aspects of land when viewed as a resource with a fixed supply.
Verified Answer
JY
Jazmine YvetteJun 17, 2024
Final Answer :
D
Explanation :
Landowners will not receive any rent if the supply of land exceeds demand, which is represented by the supply curve lying entirely to the right of the demand curve. This situation indicates that there is more land available than people want to rent at any price, leading to no rental income for landowners.
Learning Objectives
- Understand the significance and operations of rent in an economic framework.
- Clarify the features and economic aspects of land when viewed as a resource with a fixed supply.