Related to the Economics in Practice on page 217: Because land is demand determined, an acre of land in downtown San Francisco, California ________ an acre of land in downtown Knoxville, Tennessee.
A) would most likely cost more than
B) would most likely cost less than
C) should cost approximately the same as
D) would cost exactly the same as

Question

Quizplus · Accepted Answer

Land is demand determined, which means that the price of land is determined by the demand for it in a particular location. Downtown San Francisco is a highly desirable location with a high demand for land, while downtown Knoxville is not as desirable with lower demand for land. Therefore, an acre of land in downtown San Francisco should most likely cost more than an acre of land in downtown Knoxville.

Related to the Economics in Practice on Page 217: Because