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Suppose that demand for built space in a local market is growing. Does this imply that rents will rise? Why or why not? Differentiate between

  1. Suppose that demand for built space in a local market is growing. Does this imply that rents will rise? Why or why not? Differentiate between rent changes in the short run and the long run. [Hint: For the long run, explain the conditions necessary for real rents to rise in a market.]

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