Land and capital are substitutes.If rent goes up and the amount of capital used goes up,we can assume that the

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When land and capital are substitutes, an increase in the cost of land (rent) would typically lead to a substitution effect where firms use more capital instead of land. If the amount of capital used increases when rent goes up, it indicates that the substitution effect (firms substituting capital for more expensive land) outweighed any output effect (changes in production levels that might also affect input use).

Land and Capital Are Substitutes