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Because as Mark Twain is reported to have quipped, "Buy land. They're not making it anymore." Of course, the better explanation is that the image you have supplied merely depicts the short-run market for housing or developed land (pick your poison), which is fixed. Think of it this way: if you were given a substantial sum of money to buy any house, ...


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The claim is that this curve should be a vertical line because no more land can be produced. However, as far as I understand, the supply curve represents the quantity of a product that sellers are willing and able to provide to the marketplace at a given price (see Wikipedia), not the total amount available in stock. What you describe above is quantity ...


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