# Rent of Land — regulated by — Market Price of Commodities

## Subject

Rent of Land

## Predicate

regulated by (rent is a residual after wages and profit are paid)

## Object

Market Price of Commodities

## Relation Type

is regulated by

## VSM Channel

S2 → S3 (price signal determines what residual rent the land can command)

## Evidence

Book I, Chapter 11: "Rent, it is to be observed, therefore, enters into
the composition of the price of commodities in a different manner from
wages and profit. High or low wages and profit are the causes of high or
low price; high or low rent is the effect of it."

## Feedback Role

This relation establishes rent as a **residual** in the price decomposition
rather than a cost that determines price. It places Rent of Land in a
structurally subordinate position to the Market Price mechanism — rent
takes what is left after labour and capital have been paid, rather than
competing with them as a co-equal cost component. This is Smith's
sharpest break from the physiocrats.
