The Four-Quadrant Model
Can someone explain this answer to me from TestBank of Uppermark?
“If there is no change in the stock of space in the southeast quadrant of the four-quadrant real estate model, which of the following most accurately represents the amount of stock of space?
Answer: construction C divided by depreciation rate d
Explanation: When change in stock of space S is zero (i.e., DS = 0), then S = C/d.”
I dont understand why we are dividing the Construction with the depreciation rate.
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