RELATION BETWEEN RENT AND PRICE

RELATION BETWEEN RENT AND PRICE According to Ricardo, rent does not enter into price. Out the modem theory of rent deviates from the Ricardum theory in this respect. Ricardo held that rent “!d n,’1 enrcr into the cost of production of the produce and hence...

Well Rent Enters Price

Well Rent Enters Price When we are thinking. not of all the lands of the country, but of the lat available for particular uses. rent does form an element of cost and hence affects price. This is clear from the conception of the opportunity cost. Most of the land is...

Conclusion

Conclusion  Thus. the rent If land. like the remuneration of other factors of production, i~ determined b)’ the equilibrium between dell land lot. and supply of land. In other COITUS. it  scarcity in relation to demand that determines rent. Fundamentally...

Interaction of Demand and Supply

Interaction of Demand and Supply We have analysed the demand and the supply side of land. The interaction of these forces is shown in the diagram (see Only then there can he one demand curve and line supply curve. We also ass lime perfect competition. SS supply curve....

MODERN VIEW OF RENT OF LAND

MODERN VIEW OF RENT OF LAND  Modern economists have furnished a bc ucr explanation of the rent of land. According to the modern view. rent is a payment for the use of land. Rent. in this sense. is obviously determined by the demand for and the supply of land. Take...

Conclusion

Conclusion It is concluded, therefore, that the theory of no rent margin and a series of differential rents created upon true in particular cases, is a partial, not an ultimate. explanation of the phenomenon of lent. It doe n t reach the bottom of the problem. The...