Question

select all the correct answers. newton bay is a sparsely populated area. the government plans to build an international airport there and announces this plan publicly. when hotel chains learn about the airport, they become interested in building new hotels near the airport to accommodate travelers. what is the likely economic impact of this situation on commercial real estate in newton bay? the demand for land will increase. the price of land will decrease. the demand for land will decrease. the price of land will increase. the demand for land will not change.

Explanation:

When the government plans to build an international airport and hotel chains want to build hotels, the need for land to construct these facilities will rise. According to the law of supply - and - demand in economics, an increase in demand for land (assuming supply remains constant or changes less significantly in the short - term) will lead to an increase in its price.

Answer:

The demand for land will increase.
The price of land will increase.