What is the main logic behind a rise in land value due to high density in an area?

Correct answer: Demand for housing and trade rises on limited land

Correct answer: A. Land value is influenced by demand, supply, location and usefulness. In a densely populated area, more households may need homes and more businesses may seek shops, offices, storage or transport access. If the amount of suitable land remains limited, many buyers or users compete for it. This increased demand can raise land prices, especially where jobs, services and good connectivity are available. A correctly explains the demand–supply logic. B is wrong because the physical amount of land does not become infinite when population density rises. C is wrong because dense settlements usually involve intensive use of land rather than no use. D is wrong because population concentration can affect demand in land markets, although density alone does not automatically raise every plot's value. Memory cue: more demand plus limited suitable land can mean a higher price.