Which modal of the factor is inelastic?

A. Wages
B. capital
C. labour
D. land

Correct Answer:

Option D – land

Explanation

Land is defined in economics as a free gift of nature. Land does not only include land surface of the earth but all other free gift of nature or natural resources like forest, mineral resources, rivers, oceans, atmosphere, etc. unlike other factors of production, the supply of land is limited. In other words, land is a fixed factor of production, it is inelastic