Sunday, August 29, 2010

Responses to Rising Demand for Land

People are starting to compete again each other due to the rising demand for land. People who manage the lands have to manage it properly, or it may lead to problems such as conflict between different group of people as some may not be able to use the land as intended.

how about more houses instead of  super mega mall ?

It's not possible to use a piece of land for multipurpose. If the government use a piece of land to build more houses, it's impossible to use the same piece of land to build a nature reserve.

The cost of not being able to use the same piece of land for the next best use is called opportunity cost.
For the case above, the cost of building more houses is not having a natural reserve.

Here is the example of opportunity cost :

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