Reference no: EM133574248

Question: Consider the market for land in upstate New York, a mostly rural and less populous area, as compared to the market for land in the Upper West Side of New York City, a well-to-do neighborhood alongside Central Park. Because the supply of land in upstate New York isperfectly inelastic , buyers in upstate New York payan economic rent for use of the land. The rental price of land is much higher in the Upper West Side of New York City than in less densely populated areas like upstate New York. One possible explanation for this rent difference is that highly productive land is in highsupply . Some entrepreneurs decide to build parking lots in the Upper West Side of New York City. The supply curve for land to be used for parking lots isupward sloping .