A Closer Look at the Law of Rent Adding a few specific factors can help us to understand how land speculation works. Here is a model with five different grades of land.
Workers are more productive on the better land - they can produce more units of wealth.
And, on the better grades of land, more workers can be employed on each plot. Let's say that there are four plots of each grade of land in our model, and one of each has been held out of use, for speculation.