AGRICULTURAL ECONOMICS 



grades of these factors which will be able to earn 

 their necessary minimum upon lower grades of 

 land, and hence the margin of cultivation will be 



FIG. 7 



driven down to less productive land by the com- 

 petition of the increasing numbers of farmers and 

 the increasing quantities of capital-goods. The 

 resulting change in the distribution of the gross 

 product among the factors, is illustrated by the 

 dotted line in Fig. 7, where it will be noted that 

 the rent rises as a result of a fall in the returns to 

 the other factors of production. 



It is possible for the rent to rise, however, with- 

 out any absolute decline in the returns to the 

 other factors. Changes in the prices of agricul- 

 182 



