Istanbul's Dolmabaçe Palace, built near the end of the Ottoman Empire, rests on a former garden that was created in the eighteenth century at great expense by filling in a bay. (Dolmabaçe means "filled-in garden" in Turkish.) What does the Dolmabaçe Palace teach us about the elasticity of supply of land?
A) It is perfectly elastic.
B) It is not perfectly elastic, but close to it.
C) It is perfectly inelastic.
D) It is not perfectly inelastic, but close to it.

Question

Quizplus · Accepted Answer

The fact that the Dolmabaçe Palace was built on a former garden that had to be filled in at great expense suggests that the supply of land in Istanbul is not perfectly inelastic, but also not perfectly elastic. Alternatively, if the supply of land were perfectly elastic, it would not have been necessary to fill in a bay to create additional land for the palace. Therefore, D is the best answer.

Istanbul's Dolmabaçe Palace, Built near the End of the Ottoman