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5 marksThe Demand for and Supply of Factors

CAPE Economics Unit 1 · 2008 · Paper 2 · Question 5(c)(ii)

Explain why the price of land in the busy commercial district of a major city is likely to be higher than the price of land in other areas.

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Other parts of this question

  1. 5(a)Using a labour demand and a labour supply diagram explain how the share of income going to labour is determined.[14 marks]
  2. 5(b)Discuss the division of the reward of labour into transfer earnings and rent.[10 marks]
  3. 5(c)(i)Explain what is meant by the term 'derived demand'.[5 marks]
  4. 5(d)Discuss the relationship between factor rewards and cost of production of poultry on a medium to large size farm.[16 marks]

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