The effect of developers on the equilibrium rental rate and the equilibrium quantity in the land market who improve the process of filling in coastal waters with rocks and soil to form large new areas of land.

Question

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Answer 1

Question

Chapter 70, Problem 1CYU

a)

To determine

The effect of developers on the equilibrium rental rate and the equilibrium quantity in the land market who improve the process of filling in coastal waters with rocks and soil to form large new areas of land.

a)

Expert Solution

Explanation of Solution

When a land market improves the process of filling in coastal waters to form large new areas of land, it would change the equilibrium rental rate and the equilibrium quantity in the land market by increasing the supply of land. And, when the supply of land increases, then the supply curve would shift to the right. This will lead to a new equilibrium where the rental rate is lower and the quantity is higher.

Therefore, the equilibrium quantity of land would change with a rise but the equilibrium rental rate would diminish.

Economics Concept Introduction

Introduction: When the quantity demanded and supply of goods are equal, this situation is called market equilibrium.

b)

To determine

The effect of new fertilizers on the equilibrium rental rate and the equilibrium quantity in the land market that improve the productivity of each acre of farmland.

b)

Expert Solution

Explanation of Solution

If new fertilizers in the land market improve the productivity of each acre of farmland, then it would change the marginal product of land with an increase. An increase in the marginal product of land then increases the value of the marginal product of the land.

Due to this increase, the VMP (value of the marginal product) curve for land would shift to the right which will lead to a new equilibrium where the rental rate, as well as the quantity, are higher.

Economics Concept Introduction

Introduction: When the quantity demanded and supply of goods are equal, this situation is called market equilibrium.

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Answer 2

Question

Chapter 70, Problem 1CYU

a)

To determine

The effect of developers on the equilibrium rental rate and the equilibrium quantity in the land market who improve the process of filling in coastal waters with rocks and soil to form large new areas of land.

a)

Expert Solution

Explanation of Solution

When a land market improves the process of filling in coastal waters to form large new areas of land, it would change the equilibrium rental rate and the equilibrium quantity in the land market by increasing the supply of land. And, when the supply of land increases, then the supply curve would shift to the right. This will lead to a new equilibrium where the rental rate is lower and the quantity is higher.

Therefore, the equilibrium quantity of land would change with a rise but the equilibrium rental rate would diminish.

Economics Concept Introduction

Introduction: When the quantity demanded and supply of goods are equal, this situation is called market equilibrium.

b)

To determine

The effect of new fertilizers on the equilibrium rental rate and the equilibrium quantity in the land market that improve the productivity of each acre of farmland.

b)

Expert Solution

Explanation of Solution

If new fertilizers in the land market improve the productivity of each acre of farmland, then it would change the marginal product of land with an increase. An increase in the marginal product of land then increases the value of the marginal product of the land.

Due to this increase, the VMP (value of the marginal product) curve for land would shift to the right which will lead to a new equilibrium where the rental rate, as well as the quantity, are higher.

Economics Concept Introduction

Introduction: When the quantity demanded and supply of goods are equal, this situation is called market equilibrium.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 70, Problem 1CYU

a)

To determine

The effect of developers on the equilibrium rental rate and the equilibrium quantity in the land market who improve the process of filling in coastal waters with rocks and soil to form large new areas of land.

a)

Expert Solution

Explanation of Solution

When a land market improves the process of filling in coastal waters to form large new areas of land, it would change the equilibrium rental rate and the equilibrium quantity in the land market by increasing the supply of land. And, when the supply of land increases, then the supply curve would shift to the right. This will lead to a new equilibrium where the rental rate is lower and the quantity is higher.

Therefore, the equilibrium quantity of land would change with a rise but the equilibrium rental rate would diminish.

Economics Concept Introduction

Introduction: When the quantity demanded and supply of goods are equal, this situation is called market equilibrium.

b)

To determine

The effect of new fertilizers on the equilibrium rental rate and the equilibrium quantity in the land market that improve the productivity of each acre of farmland.

b)

Expert Solution

Explanation of Solution

If new fertilizers in the land market improve the productivity of each acre of farmland, then it would change the marginal product of land with an increase. An increase in the marginal product of land then increases the value of the marginal product of the land.

Due to this increase, the VMP (value of the marginal product) curve for land would shift to the right which will lead to a new equilibrium where the rental rate, as well as the quantity, are higher.

Economics Concept Introduction

Introduction: When the quantity demanded and supply of goods are equal, this situation is called market equilibrium.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 70, Problem 1CYU

a)

To determine

The effect of developers on the equilibrium rental rate and the equilibrium quantity in the land market who improve the process of filling in coastal waters with rocks and soil to form large new areas of land.

a)

Expert Solution

Explanation of Solution

When a land market improves the process of filling in coastal waters to form large new areas of land, it would change the equilibrium rental rate and the equilibrium quantity in the land market by increasing the supply of land. And, when the supply of land increases, then the supply curve would shift to the right. This will lead to a new equilibrium where the rental rate is lower and the quantity is higher.

Therefore, the equilibrium quantity of land would change with a rise but the equilibrium rental rate would diminish.

Economics Concept Introduction

Introduction: When the quantity demanded and supply of goods are equal, this situation is called market equilibrium.

b)

To determine

The effect of new fertilizers on the equilibrium rental rate and the equilibrium quantity in the land market that improve the productivity of each acre of farmland.

b)

Expert Solution

Explanation of Solution

If new fertilizers in the land market improve the productivity of each acre of farmland, then it would change the marginal product of land with an increase. An increase in the marginal product of land then increases the value of the marginal product of the land.

Due to this increase, the VMP (value of the marginal product) curve for land would shift to the right which will lead to a new equilibrium where the rental rate, as well as the quantity, are higher.

Economics Concept Introduction

Introduction: When the quantity demanded and supply of goods are equal, this situation is called market equilibrium.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 70, Problem 1CYU

a)

To determine

The effect of developers on the equilibrium rental rate and the equilibrium quantity in the land market who improve the process of filling in coastal waters with rocks and soil to form large new areas of land.

a)

Expert Solution

Explanation of Solution

When a land market improves the process of filling in coastal waters to form large new areas of land, it would change the equilibrium rental rate and the equilibrium quantity in the land market by increasing the supply of land. And, when the supply of land increases, then the supply curve would shift to the right. This will lead to a new equilibrium where the rental rate is lower and the quantity is higher.

Therefore, the equilibrium quantity of land would change with a rise but the equilibrium rental rate would diminish.

Economics Concept Introduction

Introduction: When the quantity demanded and supply of goods are equal, this situation is called market equilibrium.

b)

To determine

The effect of new fertilizers on the equilibrium rental rate and the equilibrium quantity in the land market that improve the productivity of each acre of farmland.

b)

Expert Solution

Explanation of Solution

If new fertilizers in the land market improve the productivity of each acre of farmland, then it would change the marginal product of land with an increase. An increase in the marginal product of land then increases the value of the marginal product of the land.

Due to this increase, the VMP (value of the marginal product) curve for land would shift to the right which will lead to a new equilibrium where the rental rate, as well as the quantity, are higher.

Economics Concept Introduction

Introduction: When the quantity demanded and supply of goods are equal, this situation is called market equilibrium.

Answer 6

Chapter 70, Problem 1CYU

a)

To determine

The effect of developers on the equilibrium rental rate and the equilibrium quantity in the land market who improve the process of filling in coastal waters with rocks and soil to form large new areas of land.

a)

Expert Solution

Explanation of Solution

When a land market improves the process of filling in coastal waters to form large new areas of land, it would change the equilibrium rental rate and the equilibrium quantity in the land market by increasing the supply of land. And, when the supply of land increases, then the supply curve would shift to the right. This will lead to a new equilibrium where the rental rate is lower and the quantity is higher.

Therefore, the equilibrium quantity of land would change with a rise but the equilibrium rental rate would diminish.

Economics Concept Introduction

Introduction: When the quantity demanded and supply of goods are equal, this situation is called market equilibrium.

Answer 7

Chapter 70, Problem 1CYU

a)

To determine

The effect of developers on the equilibrium rental rate and the equilibrium quantity in the land market who improve the process of filling in coastal waters with rocks and soil to form large new areas of land.

Answer 8

a)

Expert Solution

Explanation of Solution

When a land market improves the process of filling in coastal waters to form large new areas of land, it would change the equilibrium rental rate and the equilibrium quantity in the land market by increasing the supply of land. And, when the supply of land increases, then the supply curve would shift to the right. This will lead to a new equilibrium where the rental rate is lower and the quantity is higher.

Therefore, the equilibrium quantity of land would change with a rise but the equilibrium rental rate would diminish.

Answer 9

a)

Expert Solution

Answer 10

a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Economics Concept Introduction

Introduction: When the quantity demanded and supply of goods are equal, this situation is called market equilibrium.

Answer 13

b)

To determine

The effect of new fertilizers on the equilibrium rental rate and the equilibrium quantity in the land market that improve the productivity of each acre of farmland.

b)

Expert Solution

Explanation of Solution

If new fertilizers in the land market improve the productivity of each acre of farmland, then it would change the marginal product of land with an increase. An increase in the marginal product of land then increases the value of the marginal product of the land.

Due to this increase, the VMP (value of the marginal product) curve for land would shift to the right which will lead to a new equilibrium where the rental rate, as well as the quantity, are higher.

Economics Concept Introduction

Introduction: When the quantity demanded and supply of goods are equal, this situation is called market equilibrium.

Answer 14

b)

To determine

The effect of new fertilizers on the equilibrium rental rate and the equilibrium quantity in the land market that improve the productivity of each acre of farmland.

Answer 15

b)

Expert Solution

Explanation of Solution

If new fertilizers in the land market improve the productivity of each acre of farmland, then it would change the marginal product of land with an increase. An increase in the marginal product of land then increases the value of the marginal product of the land.

Due to this increase, the VMP (value of the marginal product) curve for land would shift to the right which will lead to a new equilibrium where the rental rate, as well as the quantity, are higher.