Question

un office buildings can reno- tial apartments. According lable, nost cities, firms that own office buildings vate them for use as residential apartment tory, in many cities "residential rents are sur. ng office rents." Predict the effect of this trend on the to a news story, in man passing office rents.” P

Answer 1

The effect of increase in residential rents would be a decrease in the supply of office space and as a result supply curve will shift to the left as shown in the diagram.

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