1. What determines the economic rent for land? Explain from a supply and demand perspective. 2. How does the supply of land differ from the supply of most labor? How will the effect on price of an outward shift in demand for labor differ from the effect on price of an equivalent shift in the demand for land? 3. David Ricardo, a nineteenth century economist, wrote “The price of corn is not high because a rent is paid, but a rent is paid because the price of corn is high.” Explain this statement in the context of supply and demand.
1. What determines the economic rent for land? Explain from a supply and demand perspective. 2. How does the supply of land differ from the supply of most labor? How will the effect on price of an outward shift in demand for labor differ from the effect on price of an equivalent shift in the demand for land? 3. David Ricardo, a nineteenth century economist, wrote “The price of corn is not high because a rent is paid, but a rent is paid because the price of corn is high.” Explain this statement in the context of supply and demand.
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter11: Resource Markets
Section: Chapter Questions
Problem 9PAE
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1. What determines the economic rent for land? Explain from a
2. How does the supply of land differ from the supply of most labor? How will the effect on price of an outward shift in demand for labor differ from the effect on price of an equivalent shift in the demand for land?
3. David Ricardo, a nineteenth century economist, wrote “The price of corn is not high because a rent is paid, but a rent is paid because the price of corn is high.” Explain this statement in the context of supply and demand.
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