In the market for land as a resource,the demand curve is elastic while the supply curve is perfectly inelastic.Identify the underlying assumption.

Question

Quizplus · Accepted Answer

The underlying assumption is that the supply of land is fixed and cannot be increased in response to changes in demand. This makes the supply curve perfectly inelastic. The demand curve for land is elastic because there are substitutes available for land, such as other resources or technologies that can be used instead.

In the Market for Land as a Resource,the Demand Curve