In the real estate space market when the demand curve intersects the supply curve above the replacement cost of rent developers will: Select one: a. Build new property as it is profitable to do so b. Be indifferent to building property as they will break even c. Build new property as rents have stabilized d. Not build new property as rents are falling e. Not build new property as it is unprofitable to do so
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If the demand curve intersects the supply curve above this cost, it means that the price at which properties are being rented out is higher than the cost to replace them. This implies that developers can make a profit by building new properties and renting them Show more…
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