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Suppose Bill and Hillary notice prices are higher in high rent districts. Bill says it's because high rents cause high prices. Hillary says it's because high prices cause high rents. How do I explain who is right and why?

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Solution Summary

The price of an asset is summarized. The expert examines high rents and high prices.

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The price of an asset is the investment required to own an asset. One can earn a return on an asset in two ways:
1. By way of capital appreciation in terms of price increase
2. By way of rent on the ...

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