The Ontario government has said that it is worried about urban sprawl (Expansion of residential areas onto some of the land used for farming, especially when large houses are built on lots.) In response they created a greenbelt to prevent this from happening. Suppose that the greenbelt limits growth in places between 30 and 50 kilometres from the city centre.

a) What would be the effect of this policy on the price of land?

b) ignoring any environmental benefits, is a greenbelt policy a net benefit or a net cost to society?