Answer the following questions.
What are the peculiarities of land?
Land refers to the earth's surface. According to Dr. Alfred Marshall, land also includes water, air, heat, light, coal, gold etc.
The following are some of the features of land:
i. Free gift of nature - All the resources which form a part of land are given to mankind as free gifts of nature.
ii. Inelastic supply - The endowment or supply of land is fixed and cannot be increased by human efforts.
iii. Derived demand - Land is used in the production of goods meant for final consumption. Since it cannot be directly consumed for the satisfaction of human wants, it is said to have a derived demand.
iv. Zero mobility - Land is fixed. It cannot be moved from one place to the other. Thus, land is said to be immobile.
v. Homogenous- Land is homogenous in the sense that it differs in terms of its quality. Accordingly, the rent differs from one land to another.
vi. Derived demand- The demand for land is derived demand because it depends on the demand for the goods and services in the production of which it will be used.
