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According to DiPasquale-Wheaton 4-Quadrant Model Diagram, analyze what will happen in long run when the real estate price increases following the blue arrow. Rent $

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According to DiPasquale-Wheaton 4-Quadrant Model Diagram, analyze what will happen in long run when the real estate price increases following the blue arrow. Rent $ Asset Market: Valuation Space Market: Rent Determination D R* Price $ Stock (SF) P* C* Asset Market: Construction Space Market: Stock Adjustment Construction (SF) The construction will decrease as the real estate becomes pricey The rent will increase as the cost to own a property increases The rent-price ratio will increase O The rent will decrease as the supply of space will increase According to DiPasquale-Wheaton 4-Quadrant Model Diagram, analyze what will happen in long run when the real estate price increases following the blue arrow. Rent $ Asset Market: Valuation Space Market: Rent Determination D R* Price $ Stock (SF) P* C* Asset Market: Construction Space Market: Stock Adjustment Construction (SF) The construction will decrease as the real estate becomes pricey The rent will increase as the cost to own a property increases The rent-price ratio will increase O The rent will decrease as the supply of space will increase

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