The Economic rent is the amount that a property should rent for in the current open market.
Economic rent is money earned in excess of what is economically or socially necessary. This can happen, for example, when a buyer attempting to obtain an exclusive good or service makes an offer before hearing what the seller considers an acceptable price.
Economic rent is the revenue that can be earned from a fixed supply of land or another natural resource — as economists like to say, the supply is perfectly inelastic. Because the supply is perfectly elastic, the amount of supply is independent of any income generated by the resource. Because it is a natural product that has always been available, increased demand does not increase supply. As a result, it is a free gift to society.
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