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Economic rent and the market for land consider the market for land in central pennsylvania, where land is used mainly for growing agricultural goods, as compared to the market for land in rittenhouse square, a small section of philadelphia known for its cafes and shopping. because the supply of land in central pennsylvania is , buyers in central pennsylvania pay for use of the land. the rental price of land is much lower in central pennsylvania than in more densely populated areas like rittenhouse square. one possible explanation for this rent difference is that highly productive land is in low . some entrepreneurs decide to build parking lots in rittenhouse square. the supply curve for land to be used for parking lots is .
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