we must be careful, in applying this formula in practice
to allow for the possible deviations between the nominal
and the true rent, and similar complications. The
price, it must be observed, is derived in this way from
the rent, not the rent from the price. ¹ Rent is thus
logically the simpler, price the more complex thing.
It is well, therefore, to analyze in the first instance the
principles of rent, if we live in a country where the
practice of leasing land for annual rent is less common
than it is in Great Britain, even if, for whatever reason,
it is the price of land with which we are concerned in
practice. The problem of price contains two distinct
elements which it is not easy to handle when mixed up
together. For the rate of interest represents in itself
an important branch of economics, which will require
a separate chapter to itself.

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