"Pure economic rent" exists when the:
A)supply of land is perfectly inelastic.
B)supply of land is perfectly elastic.
C)demand for land is perfectly inelastic.
D)demand for land is perfectly elastic.
E)outright purchase and ownership of land is forbidden by law.

Question

Quizplus · Accepted Answer

Pure economic rent exists when the supply of land is perfectly inelastic, meaning that the quantity of land cannot be increased or decreased regardless of changes in demand for it. In this situation, the price of land is entirely determined by the demand for it, and any increase in demand will result in an increase in the price of land, leading to economic rent for landowners.

"Pure Economic Rent" Exists When The