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If a Country's Population Increases While the Supply of Farmland

Question 26

Multiple Choice

If a country's population increases while the supply of farmland is fixed, then farmland prices will most likely


A) decrease because people spend more money on food and have less to spend on rent
B) increase because the marginal revenue product of food decreases
C) decrease because farmers must cultivate less productive foods such as potatoes
D) increase because the marginal revenue product of land increases
E) stay the same because there is no relation between farm land prices and population

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