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Product analysis

Economics

Supply of land is perfectly inelastic from the economic point of view but from firm's point of view it is relatively elastic SIR can you please explain the statement

Manoj Kumar Reddy Chapaala

CA Inter

★ 13K+

11-Sep-20 08:00

383

Answers (1)

Total land availability cannot be increased. So if you look at economy as a whole, the supply will not increase or decrease. But at an individual level, supply may increase or decrease.