In the short run, the supply of land cannot be increased even if the price of land increases substantially. In other words, the price elasticity of supply for land is equal to _____ in the short run.

Question

Quizplus · Accepted Answer

The price elasticity of supply for land in the short run is 0 because the quantity of land available cannot be increased regardless of an increase in price, indicating a perfectly inelastic supply.

In the Short Run, the Supply of Land Cannot Be