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Consider the Market for Land

Question 211

Multiple Choice

Consider the market for land.Suppose the value of the marginal product of land decreases.Holding all else constant,what will happen to the equilibrium rental price for land?


A) The equilibrium rental rate increases.
B) The equilibrium rental rate decreases.
C) The equilibrium rental rate does not change.
D) It is not possible to determine what will happen to the equilibrium rental rate.

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