Question

Istanbul's Dolmabaçe Palace, built near the end of the Ottoman Empire, rests on a former garden that was created in the eighteenth century at great expense by filling in a bay. (Dolmabaçe means "filled-in garden" in Turkish.) What does the Dolmabaçe Palace teach us about the elasticity of supply of land?

Answer 1

Answer: It is not perfectly inelastic, but close to it.

Explanation:

The thing that the Dolmabaçe Palace teach us about the elasticity of supply of land is that it's not perfectly inelastic, but close to it.

It should be noted that supply is said to be price inelastic when a change in the price results in a smaller percentage change in the supply. It thereby means that the price elasticity of supply is less than one. Even though the supply of land in relation to the Dolmabace palace isn't really perfectly inelastic,it is really close to that.