Name Module 70 Featured Worksheet The Markets for Land and Capital Consider the graph below and answer the following questions regarding fixed factors of production. Rental rate 400 D2 300 D1 20 Q of resource 1. Describe the price elasticity of supply for a factor with a fixed supply. What determines the rental rate when the supply of a factor of production is fixed? 2. What is the rental rate if demand is DI? 3. What is the rental rate be if demand is D2? 4. Define economic rent. Calculate economic rent if demand is D2. Show your work