Supply of land in a given use ?
Correct answer: D. will be upward sloping because as land becomes more valuable in once use, the amount of land made available for that use will increase
- A. will be perfectly inelastic in the long run. but upward sloping in the short run
- B. is perfectly inelastic since there is a fixed amount of land
- C. is perfectly elastic since there is fixed amount of land
- D. will be upward sloping because as land becomes more valuable in once use, the amount of land made available for that use will increase
Explanation
Although the total amount of land is fixed, land can be shifted between uses. Therefore, the supply of land for a particular use is generally upward sloping as higher returns attract more land to that use.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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