The von Thunen model of urban space features rents which can change instantly. Assuming wage equality, answer the following: A) Which person pays the highest rent? Does that person have lower utility? B) Suppose a park is created on one side of the urban space. Do the people on that side of the urban space now pay higher rent? Which side has higher utility? C) Compare an contrast the effects on rent and utility if all schools are improved uniformly versus one school improving dramatically.

The von Thunen model of urban space features rents which can change instantly. Assuming wage equality, answer the following: A) Which person pays the highest rent? Does that person have lower utility? B) Suppose a park is created on one side of the urban space. Do the people on that side of the urban space now pay higher rent? Which side has higher utility? C) Compare an contrast the effects on rent and utility if all schools are improved uniformly versus one school improving dramatically.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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