Chapter 29: Problem 2

The supply of land (LO1) a) is fixed b) varies from time to time c) rises with demand d) is higher in urban areas than in rural areas

Short Answer

Expert verified

The correct answer is option a) "is fixed". The supply of land is fixed and does not change with time or demand because it is a scarce resource.

Step by step solution

1. Analyzing Option a: "is fixed"

The supply of land refers to the availability of land in the market. Land is a scarce resource, which means it is not unlimited. However, the supply of land does not change, as it is fixed in nature. This option may be a potentially correct answer, but let's explore the other options as well.

2. Analyzing Option b: "varies from time to time"

The supply of land cannot vary from time to time. Although land can be allocated to different uses over time, the overall total amount of land doesn't change because land is a scarce resource, and no new land is being created or destroyed. Hence, this option is incorrect.

3. Analyzing Option c: "rises with demand"

While it is true that the value or price of land may increase as demand for land increases, the supply of land itself does not rise with demand. As mentioned earlier, land is a fixed and scarce resource, so its supply cannot increase in response to demand. Therefore, this option is incorrect.

4. Analyzing Option d: "is higher in urban areas than in rural areas"

This option refers to the availability of land in urban areas as compared to rural areas. However, it doesn't deal with the overall concept of supply of land. The distribution of land between urban and rural areas is not the same as the concept of supply of land, which is about the total availability of land. Therefore, this option is incorrect.

Conclusion

After analyzing all the options, we find that option a) "is fixed" best describes the supply of land. It highlights the fact that land is a scarce and fixed resource, and its total availability doesn't change with time or demand.