If land becomes more valuable in residential use than in commercial use,
A. there will be no change in the allocation of land, as there is no responsiveness to price changes by suppliers of land.
B. the supply of land for commercial use will become perfectly elastic, and the supply of land for residential use will become perfectly inelastic.
C. there can be no change in the allocation of land because land is fixed in supply.
D. the supply of land available for commercial use should decrease and the supply of land for residential use should increase.
Answer: D
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