Related to the Economics in Practice on page 226: 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

Because land is demand determined, an acre of land in downtown San Francisco, California would most likely cost more than an acre of land in downtown Knoxville, Tennessee. This is because San Francisco is a highly desirable and competitive location for businesses and residences, resulting in a higher demand for land and thus a higher price. Conversely, Knoxville may have lower demand for land and therefore a lower price.

Related to the Economics in Practice on Page 226: Because