Homework Answers
Answer -
Option (2) - Demand is the active and supply is the passive
determinant of land rent.
Explanation -
The supply of land is fixed and Inelastic. The demand for land is
changing according to the requirement of it.The rate of rent on
land depends upon its use, fertility, location of land etc. No
single rent can be applied for all land.The demand for land is also
determined by its marginal revenue productivity.According to that
different rates of rent charged for different land.so demand for
land is active and supply is passive factor of land rent.
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