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Question: Land Prices Reflect High Commodity Prices As their family grows, the Steens are finding it more difficult for the next generation to stay in ranching. "The problem is they don't create any more land," Steen said. As the prices for cattle, corn, and other commodities climb, so does the value of land in South Dakota.
a. Why does the price of land in South Dakota keep rising? In your answer, include a discussion of the demand for and supply of land.
b. Use a graph to show why the price of land in South Dakota increased over the past decade.
c. Is the supply of land in South Dakota perfectly inelastic?
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