Running head: ECONOMIC QUESTION1Economic QuestionInstitution AffiliationDateECONOMIC QUESTION2A profitable motel may shut down in the long run if the land its located on becomeshighly valuable as a result of economic development since the sole proprietor of the motel mightsell it for more profit. This is because the land will become more expensive and so will thismotel property, considering economic developments surrounding it. Therefore, if it is sold, theowner can open up other motels in places where land is not highly valued or invest in otheropportunities. This can be an opportunity to sell it for a higher price since its value has alsoincreased due to its surrounding developments. On the other hand, this motel might shut down inthe future because the property tax that the owner will be forced to pay will rise. This tax mayslowly affect the profits realized by the motel negatively after economic developments hence theneed to shut it down (Jacobs, 2016). Another reason that the motel might shut down is that theeconomic developments could attract more customers in the area hence the cost of products andservices will increase. This will attract other new ...
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