The Basic Insight: The Law of Rent Here we have a very simple,
ten-screen model in which we explore the Law of Rent. The law of
what? You mean you have never heard of it? It's odd, but
although the Law of Rent is every bit as fundamental as the laws
of supply and demand, or motion, or thermodynamics, a great many
people have never heard of it. Why do you suppose that is? Could
it be because the Law of Rent has to do with land, and land is
not so important anymore, in today's "information age"? No. Land
won't ever become "less important." How could it? Land — the
physical universe, uncreated by humans — is the only ground we
can stand on, and the only stuff we can make things out of. So
why, then, have most people never heard of the Law of Rent? That
is one of the great "intellectual detective stories" of modern
times. To understand why, we must come to grips with this simple
principle. So let's go! 1. Different Grades of Land Here are
four sections of a piece of land, with natural resources (fruit
trees). Let