When using a supply and demand model to illustarte how land

When using a supply and demand model to illustarte how land rents are set, economists typically draw the supply curve as a vertical line because

a. the supply of land is fixed (this is correct?)

b. the supply of land is perfectly inelastic

c. the quantity of land supplied does not increase when rents go up

Solution

THE SUPPLY OF LAND IS FIXED, T CANNOT BE INCREASED, THUS ITS SUPPLY IS PERFECTLY INELASTIC ALSO, HOWEVER IF RENT GOES UP THAN WHAT WE CAN EXPECT IS THE LAND USE MAY BE CHANGED ACCORDING TO THE RENT. SINCE LAND CAN BE PUT TO MANY USES HIGHER RENT WILL ATTRACT THE SHIFT OF LAND USE FOR THAT PARTICULAR ACTIVITY IF WITHIN THE LIMITS, BECAUSE LAND CAN ALSO NOT BE MOVED FROM ONE PACE TO ANOTHER.