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March 29, 2015

March 29, 2015

Posted by **eStone** on Tuesday, May 5, 2009 at 10:04pm.

a. What is the price (per square foot) of housing at u = $8? What is the bid rent at u = $8?

b. Assume that the demand for housing is perfectly inelastic. What is the price of housing at u = 5?

c. Assume that housing firms do not engage in factor substitution. What is the bid rent at u = 5?

d. How do the answers to (b) and (c) change if the demand for housing is price-elastic and firms engage in factor substitution? Would the prices of housing and land be larger or smaller?

- Economics -
**economyst**, Wednesday, May 6, 2009 at 11:19amTake a shot, what do you think. (what do you mean by u=$8 ??)

- Economics -
**joie**, Thursday, March 24, 2011 at 3:06amcommting

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