Question

(1)	(2)	(3)	(4)	(5)
Land Rent	Quantity Supplied	Quantity Demanded	Quantity Demanded	Quantity Demanded
$400	60	40	30	10
300	60	50	40	20
200	60	60	50	30
100	60	70	60	40
0	60	80	70	50

Refer to the table, in which the values for columns (2) through (5) are in acres. Positive land rent will occur if the relevant columns are

Multiple Choice

• (1), (2), and (3) only.

• (1), (2), and (3) and (1), (2), and (5).

• (1), (2), and (4) and (1), (2), and (5).

• (1), (2), and (3) and (1), (2), and (4).

Answer 1

Select the last option (1), (2), and (3) and (1), (2), and (4).

The quantity of land is fixed at 60 acres. Quantity demanded in column 3 is also 60 at a positive rent of 200. Quantity demanded in column 4 is 60 when the rent is positive at 100. However column 5 does not have a quantity demanded at 60 acres. So this demand schedule is not valid for the given rent