Economics
posted by eStone .
Consider a monocentric city in which the cost of commuting is $10 per mile per month. A household located eight miles from the city center occupies a dwelling with 1,200 square feet at a monthly rent of $600. Nonland cost per dwelling is $200, and there are four houses per acre.
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 priceelastic and firms engage in factor substitution? Would the prices of housing and land be larger or smaller?
Respond to this Question
Similar Questions

Quantitative Methods II
The monthly income of residents of Daisy City is normally distributed with a mean of $3000 and a standard deviation of $500. a. What is the random variable? 
calc
A train travels from city A to city B. The cities are 600 miles apart. The distance from city A at t hours after the train leaves A is given by d(t) = 50t + t^2. What is the average velocity of the train in miles per hour during the … 
math
Two stations, A and B, are located six miles apart on a railroad. The rates of cartage of coal are 50 cents per ton per mile from A and 75 cents per ton per mile from B. At a certain consumer's home, located on the railroad between … 
Accounting 5
Bethany Link delivers parts for several local auto parts stores. She charges clients $0.75 per mile driven. She has determined that if she drives 2,100 miles in a month, her average operating cost is $0.55 per mile. If Bethany drives … 
Accounting Please help me
Bethany Link delivers parts for several local auto parts stores. She charges clients $0.75 per mile driven. She has determined that if she drives 2,100 miles in a month, her average operating cost is $0.55 per mile. If Bethany drives … 
Math I Have no idea PlEASE help me
Wind can affect the speed of an airplane. Suppose a plane is flying roundtrip from New York City to San Francisco.The plane has a cruising speed of 300 miles per hour.The wind is blowing from west to east at 30 miles per hour. When … 
Trigonometry Help!
After one hour in flight, an airplane is located 200 miles north and 300 miles west of the airport. What is the magnitude of the plane's velocity? 
Springdale
If my food budget is $200 per month and it represents 40% of my monthly rent, what is my rent total per month? 
Math
The land area of Statesville, NC, is 20.5 square miles. If the entire US population (currently about 320.2 million) were put inside the city limits of Statesville, determine the number of square feet that each person would have. Round … 
Math
The population in a 55 square mile city, City A, is 44,000. A neighboring city, City B, measures 65 square miles and has 48,750 citizens. Determine which city has a greater population density and by what percentage its population density …