Question

An increase in the demand for land​ ______.

A. has no effect on the equilibrium rental rate or the equilibrium quantity of land
B. raises the equilibrium rental rate but leaves the equilibrium quantity of land unchanged
C. raises the equilibrium rental rate and increases the equilibrium quantity of land
D. increases the equilibrium quantity of land but leaves the equilibrium rental rate unchanged

Answer 1

C. raises the equilibrium rental rate and increases the equilibrium quantity of land

Step-by-step explanation:

As a result of the increase in demand for land, the equilibrium price and quantity would increase

Please check the attached image for a graph showing how increase in the demand for land affects price and Quanitity