The U.S. government has decided to implement new sanctions on Iran. What this means is that the government has decided to stop demanding certain goods that come from Iran (mainly, oil) as well as limit the supply of US goods to Iran (property). What larger effects do you think these sanctions will have in the input/output markets? Are Americans helped or hurt by these sanctions?
Consider the following scenario: US households currently supply land to the input market. After the sanctions there are less demanders because Iran can no longer exchange money for land in the US input market. Could this be shown using a demand graph? What do you expect will happen to the price of land if demand decreases but supply stays the same?
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