determined by demand. Since there is little demand for the land, its rental
price is low. Similarly, the land in downtown Toronto cannot move
anywhere, and so its rental price is determined by demand. And since
there is lots of demand for a hectare in downtown Toronto, its rental
price is high.
Having learned about factor markets in general, we are now ready to
examine some specific factor markets. In Chapter 14 , we examine some
details about labour markets, such as minimum wages, discrimination,
labour unions, and income inequality. In Chapter 15 , we examine
capital markets and the interest rate.