Using appropriate diagram, show how interaction of demand and supply curve in land market leads to determination of equilibrium rent.

Diagram and Explanation: Equilibrium Rent in the Land Market

In the land market, the equilibrium rent is determined by the interaction of the demand for and supply of land. The demand for land is driven by factors such as population growth, economic development, and the location's desirability, while the supply of land is determined by the available land area for development. The equilibrium rent is the price at which the quantity of land demanded by users equals the quantity of land supplied by owners. Let's illustrate this concept with an appropriate diagram.

Diagram:

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