If the Demand for Living in and Visiting New York

Multiple Choice

If the demand for living in and visiting New York City were to decrease, then the following would happen in this order:

A) prices of goods and services would fall, and then land rents would decrease.
B) land rents would decrease, and then prices of goods and services would decrease.
C) land rents would decrease, and then prices of goods and services would fall, and finally land rents would increase.
D) land rents would decrease, and then prices of goods and services would increase.
E) There is not enough information to answer the question.