If Total Lease Value is defined as square footage x rental rate x lease term, what happens to the Total Lease Value if you double both the square footage and the rental rate, keeping the lease term constant?

If Total Lease Value is defined as square footage x rental rate x lease term, what happens to the Total Lease Value if you double both the square footage and the rental rate, keeping the lease term constant?

• A. It Increases by a Factor of Four
• B. It Doubles
• C. It Remains the Same
• D. It Increases by Two Times

Answer: (A)

Total Lease Value grows with the product of square footage, rental rate, and lease term. When two inputs are doubled and the third stays the same, the overall product scales by the square of the doubling factor. Here, TLV = S × R × T. If you replace S with 2S and R with 2R while T stays constant, the new TLV is (2S) × (2R) × T = 4 × S × R × T. So the Total Lease Value increases by a factor of four. Doubling only one factor would double the value; doubling both factors yields quadruple.

Total Lease Value grows with the product of square footage, rental rate, and lease term. When two inputs are doubled and the third stays the same, the overall product scales by the square of the doubling factor. Here, TLV = S × R × T. If you replace S with 2S and R with 2R while T stays constant, the new TLV is (2S) × (2R) × T = 4 × S × R × T. So the Total Lease Value increases by a factor of four. Doubling only one factor would double the value; doubling both factors yields quadruple.