Professional Documents
Culture Documents
One of the most fundamental concepts of economics is demand and supply. Economists
defined demand as the quantity of goods consumers want and are willing to buy, while supply is
the amount of resources at ones disposal. In land economics, these goods and resources refers
to land and products derived from it. Land economics is concerned with mans economic use of
the surface resources of the earth and the physical and biological, economic, and institutional
factors that affect condition, and control of his resources (Barlowe, 1987). Land can be defined
from different point of views. For the purpose of this discussion, land will be viewed economically
as resource, space, property, factor of production, consumption good, and capital.
Demand for Land
Demand is the amount of good and services consumers are willing to buy at a given price
over a specific period of time. Similarly, land demand refers to the amount of land and/or land
products that individuals or firms are willing to buy at a certain price. However, Barlowe (1978)
pointed out that few people wanted real estate for its own sake; rather man demand for land
mostly because of the products can produce to secure his survival. This makes demand for land
a derived demand as it serves as an intermediate good to mans ultimate demand for crops,
shelter, space for employment, recreation and business.
Housing is one of the human's basic need where we spend most our time, aside from
place of employment for the working class or place of education for those under/above the working
age. It is no wonder why Barlowe (1978) stated that housing is an important item and takes greater
part in most families budget. For this reason, head of the families usually considers alternatives
when selecting place of residents. In urban areas, condominiums can be an alternative to
bungalow houses for small families. Working class may also want to settle in 'boarding houses'
instead of renting an apartment or an entire house. Another option is to consider living outside
the city like in dormitory cities as discussed previously.
Population
Increasing population has serious impacts on the demand for land. Malthusian theory
states that population is growing geometrically while resources are increasing at arithmetic phase
only. For the case of land which has a fixed supply, an increasing population will have an impact
on overall demand of land.
Proximity
Accessibility of a place is one of the factors people usually consider when deciding where
to reside, apply for a job, go to school, or even when having vacation. A farmer would like to have
a farm that is located near the market; an industrial site may be put outside the central business
district but not too far away from its laborer; while a commercial establishment will not be located
in the middle of a farmland but rather within the core of the city.
Physical characteristics of the site
An eco-tourism site needs to have an attractive view where people can be close to nature.
It can a hilly place where you can have overlooking for the city, a beach front that offers fresh air
and healthy sunlight, or a remote where you can go camping and have bon fire at night without
the worry of adding pollution to the atmosphere. Development of residential areas, on the hand,
requires stable ground structures and flat topography. Land is a scarce resource and its varying
characteristics makes it even scarcer depending on the activities man wants to perform on it.
Taste and preference
Preference for better quality of education, more job opportunities, and access to advance
science technology are few example why most people chose to reside in urban areas. Conversely,
people who are under the retiring age and has the capability to pay may choose to reside in rural
areas, away from the busy city life. Taste and preference affect how people demand for land.
Usually, this factor is more evident to those who has the means to pay. Those who have limited
finances may opt to choose cheaper options, proving the relationship between demand and price
as discussed earlier.