Suppose That a Large Lake in the Middle of Minnesota

Multiple Choice

Suppose that a large lake in the middle of Minnesota evaporates, leaving more fertile farm land for growing corn available. Assuming that land and labor are complements in a farming production function, what would happen to the wages earned by workers and rents earned by landowners?

A) Both wages and rents would increase.
B) Both wages and rents would decrease.
C) Wages would increase, and rents would decrease.
D) Wages would decrease, and rents would increase.