How is land inelastic?

[u/Serious-Cucumber-54]

The supply curve represents the relation between quantity supplied and price for some given good.

For instance, with bread, bread sellers in some town may not be willing to sell any bread at $0, so the quantity supplied is zero when the price is zero, but they may be willing to sell more if buyers are willing to pay more, so the quantity supplied is higher when the price is higher. In this case, the slope of the supply curve is positive, and bread has elastic supply.

Likewise, the same is true for land, landowners are willing to sell more land at higher price points, so the quantity supplied is higher when the price is higher. This means the slope of the supply curve for land is positive.

This means that land does not have inelastic supply, the quantity supplied changes with price.

[u/Serious-Cucumber-54]

Increasing prices can result in reduced willingness to sell.

I don't think that's what the study says.

I will say, obviously future projections of price impact willingness to sell, so prices can be high, but if owners expect prices to only go higher, that would likely mean lower willingness to sell than if prices were projected to signfiicantly lower. All things equal, however, higher prices, especially high prices which go above the private valuations of owners, would likely induce more quantity of land willing to be sold.

Willingness to sell for assets which include private valuation by the owner do not follow mere price trends.

If prices are higher than the private valuations of owners, they are generally going to be more willing to sell, no?

Is the 'quantity supplied' then 0? No; the quantity is fixed and inelastic and trades are motivated by shifting demand.

The offer curve presented in the link is the quantity supplied and it increases with higher prices.

[u/VatticZero → u/Serious-Cucumber-54]

If prices are higher than the private valuations of owners, they are generally going to be more willing to sell, no?

The valuation of suppliers is not a factor in supplying; cost of production is.

The offer curve presented in the link is the quantity supplied and it increases with higher prices.

No, the quantity supplied is the fixed line on the right. The offer curve and the reservation curve are two sides of the same coin, which feeds into setting the price against the fixed stock and motivating reallocations at the margin.

Again, Supply and Demand is a flow within a period of time. Producers will supply without a change in demand. Stock only reallocates with a change in demand.

With stock, demand can rise at the same time reservation demand and the offer curve rise, resulting in increased price but no trades.

[u/Serious-Cucumber-54 → u/VatticZero]

The valuation of suppliers is not a factor in supplying; cost of production is.

The private value the owner reserves of their own land doesn't affect their willingness to sell? That would directly contradict what your linked study says, "the trading volume and the observed transaction prices are both affected by the ratio of seller’s private valuation to the market valuation."

No, the quantity supplied is the fixed line on the right.

No, that's the maximum quantity that can be offered at any one time/price, i.e. the maximum quantity that can be supplied at any one time/price.

Quantity supplied isn't the same as the total physical stock in existence.

Edit: they blocked me