Which of the following does not explain differences in rent for different parcels of land?
A) productivity differences
B) demand differences
C) supply-elasticity differences
D) marginal-revenue-product differences

Question

Quizplus · Accepted Answer

Supply-elasticity differences cannot explain differences in rent for different parcels of land. The supply elasticity only affects the quantity of land supplied at a given rent, but it does not explain the differences in the rent itself. Productivity differences, demand differences, and marginal-revenue-product differences all affect the value and rent of different parcels of land.

Which of the Following Does Not Explain Differences in Rent