The Supply of Land

1
The Supply of Land

• Prepared by Sandrea Butcher

2

• Recall that land refers to all naturally
  occurring gifts of nature.

3
Land unlike labour and capital, tends to be fixed
since more of it cannot be produced if the demand
for it increases.
4
The supply of land to the entire economy will be
perfectly inelastic
Supply of land
S
Rent
Quantity of land
5
The land available to a particular industry or
use is not fixed. Land use can shift from
Residential
Agricultural
Recreational
6
If land is currently in agricultural use and the
owner is offered more money from a residential
developer, with the right planning permission,
its use will change.
7
As the price paid increases, a greater quantity
will be supplied to the user with the higher bid.
Rent
S

• The supply curve of land for a particular use
  will be upward sloping and elastic.

Quantity of land