Which modal of the factor is inelastic?

Analyze the question: The question is poorly worded. "Modal" most likely means "mode" or "type" of the factor of production. It asks which factor of production has an inelastic supply.

Concept: Elasticity of supply measures how responsive the quantity supplied is to a change in price.

• Elastic supply: producers can increase quantity quickly when price rises.
• Inelastic supply: quantity supplied changes little or not at all when price changes.

Step-by-step reasoning:

1. Wages is the reward for labour, not a factor of production, so it is eliminated.
2. Capital can be produced or increased over time (machines, factories, tools). Its supply is elastic in the long run.
3. Labour can be increased by training, migration, or longer working hours, so its supply is fairly elastic, especially in the long run.
4. Land is a "gift of nature." Its total supply is fixed. Raising the rent or price of land does not create more of it, so its supply is perfectly or highly inelastic.

Answer: Land is the factor with inelastic supply.

Exam tip: Remember "Land is fixed, so its supply is inelastic." When a JAMB question asks which factor of production has the most inelastic (or fixed) supply, the answer is nearly always land. Also remember that wages are a reward for a factor, not a factor itself.