Friday

December 19, 2014

December 19, 2014

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

**Answer this Question**

**Related Questions**

math - Two stations, A and B, are located six miles apart on a railroad. The ...

science - the municipality of Windhoek supplies 2 million cubic meters of water ...

Physics for life scince - III) The municipality of New York supplies 2 million ...

Science - The first speed limits for cars were two miles per hour in a city and ...

Stats - Consider the Avionic Manufacturing Company that wishes to meet a demand ...

Quantitative Methods II - The monthly income of residents of Daisy City is ...

math - Mark's house is 90 miles away from New York. You travel 15 miles on city ...

physics - City B is northwest of City A, and the 400 mile trip by car takes 8 ...

Physics - City B is northwest of City A, and the 400 mile trip by car takes 8 ...

Quantitative Methods - The monthly income of residents of Daisy City is normally...