Question

Answer the following question.
What are the peculiarities of land?

Answer 1

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.