Suppose the Government Designates Certain Areas Within a Community to Be

Multiple Choice

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? (i)
The price of non-wetland land will rise.(ii)
The marginal product of non-wetland land will fall.
(iii)
The marginal product of non-wetland land will rise.

A) (i) and (ii) only
B) (ii) only
C) (i) and (iii) only
D) (iii) only