Use a supply and demand graph to explain why the rent on land is demand determined

What will be an ideal response?

The equilibrium rent is determined by the placement of the demand curve. When demand is D1, the equilibrium rent is R1 . When demand rises to D2, the equilibrium rent rises to R2 . The supply of land is perfectly inelastic.

Economics

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Explain the dilemma that supply shocks pose when the Fed chooses to use monetary policy to achieve its goals

What will be an ideal response?

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Economics

Inventory investment is

a. never positive. b. often negative. c. can be either negative or positive. d. always positive.

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Economics