Question:

Why is Land Rent Inelastic?

by  |  earlier

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Im guessing it is because you have to pay for the land whether or not you are staying on it.

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  1. The supply of land is fixed so it is inelastic and the rent is determined by the demand for land which is not inelastic.  


  2. The supply of land cannot be changed.  There's only so much of it, so price of land is not going to be changed or affected by the amount of land.  When the supply is not fixed, then price can be affected.  Hope my explanation isn't confusing and good luck :D.

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