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Supply is inelastic and demand is elastic for land.
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Why is demand the sole active determinant of land rent?
Demand is the sole active determinant of land rent because the supply is fixed.
What is modern theory of rent?
Modern Theory of RentThis theory is also known as demand and supply theory of land. It is based on the following assumptions:1. There is always perfect competition among various cultivations.2. The fertility of different lands is same.3. The land is used for a particular job.Explanation of the TheoryThe theory explains the concept of rent in terms of demand and supply. According to the theory rent is payment for the use of land. Demand for the use of land is actually the demand for that product which is produced on it. Demand for the land will increase with increase in demand for that particular product. Since th supply of land is fixed i.e. the supply cannot increase or decrease therefore the rise or fall of rent will be entirely governed by it's demand. Thus on the side of demand rent of land is determined by its productivity not total productivity, but marginal productivity. And for supply, the supply of land in general is absolutely inelastic, as such in supply is independent of what it earns. From the following figure it is clear that the supply of land is fixed SS, while as demand is increasing from DD to D'D' and to D'' to D'', the rent is also increasing from RR to R'R' and to R''R''.ANSWERED BY KISHORBVIMED
What is land shortage?
Land scarcity is what happens when the demand for land is higher than the supply due to population growth.
What are the factors that can influence demand for land labor capital entrepreneur?
Supply, demand, price, and cost would be the factors.
What are the reasons for the rising demand for land Explain?
Land is a limited commodity. The demand for land is greatest around expanding urban areas. This creates higher land prices around these areas.
What is the Rental price for a 2800 square foot property?
The answer is, "Whatever the renter is willing to pay that the owner will accept." The owner wants to be "competitive" in the "marketplace" of leasing land in that area. Unless the owner will give you a special deal, he or she will ask for a price -- based on many factors -- that should be approximately the same as the price for similar properties. Cost is determined by "supply" and "demand." Where land is scarce and "supply" is low (such as in a major city) or where many people want land and the "demand" is high (such as at a beach resort), the price will be higher. If land is plentiful and "supply" is high (such as in farming areas), or where few people want land and the "demand" is low (such as swampland), the price will be lower. Some considerations in establishing a price: In what country is the land? If in the United States, which state? (demand and the expense of taxes vary from state to state.) What is the zoning of the property? (How can the land be used?) Are there any improvements to the property? Is there road access to the property? Remember that price is determined by a combination of supply and demand. Some things, such as land or vehicles, are negotiated directly between buyer and seller to determine a price reflecting supply and demand. Other things, such as groceries or shoes, have set prices based on anticipated supply and demand.
What would happen to your water supply if land use was not regulated?
If land was not regulated, then there could be more pollution. Polluted areas would cause the water supply to be unusable and undrinkable if runoff from chemical sources enter into the supply.
What are the Factor effecting land supply?
Factors affecting land supply include population growth, government policies on land use, zoning regulations, availability of infrastructure and utilities, market demand for land, and environmental considerations such as conservation efforts or restrictions. These factors can influence the availability and accessibility of land for development or other uses.
What determines prices of land labor capital and entrepreneurship in the factor market?
Demand and supply in every market will determine the price differently.
What are the reasons for rising demand of the land?
Reasons for the rising demand of land are: increase in population. loss of arable land.
Write Equations for Supply and Demand Functions?
supply and demand both are the function of price (as law of demand and law of supply stated). also price has positive impact on supply and negative impact on demand.supply=f(p)demand=f(p)so by having the idea of laws of demand and supplydemand equation can be written as:D=a-bp ; a=intercept , b=slopeand supply equation can be written as:S=c+dp ;c=intercept , d=slopethese equations can only be true if all other things remain sameotherwise we have to include others factors causing change in demand and supply.like income,prefferences,taste,advertisement cost,weather etc for demandand price of resourses(land,labor,capital,row meterial),management skill,technology,marketing,production techniques expectations etc for supply
What will happen if there's an under supply of carbon dioxide during photosynthesis?
Rate of photosynthesis would become lower but it is rare on land .
