Question: If demand for built space is declining, does this imply that real rents (that is, rents measured net of inflation) will fall in the market?

  1. If demand for built space is declining, does this imply that real rents (that is, rents measured net of inflation) will fall in the market? Why or why not? As in the previous question, differentiate between short-run and long-run rent adjustments.

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