Which will grow more, Wenatchee or East Wenatchee? Why? Your answer should include econ words like "supply," "demand," "quantity supplied," "quantity demanded," and a certain important word from chapter 5. It should also probably include a graph or two.
Wenatchee is a town on a large river. On the other side of the river is East Wenatchee (since the river is the county line, these are in two different counties and thus, two different cities.) Wenatchee (which I refuse to call "West Wenatchee") is pretty much hemmed in on all sides by mountains. East Wenatchee, on the other hand, sits on a large plateau surrounded by wheat fields.
Assume that housing in Wenatchee and housing in East Wenatchee are what economists call "perfect substitutes." This means basically that people don't care whether they live in Wenatchee or East Wenatchee. Then imagine that in the nearest big city there is a pandemic followed by a bunch of riots. Part of the town is taken over by Marxists revolutionaries. The city starts dismantling the police and raising taxes because they have no money. (Just try to imagine it!) and this causes a lot of people to decide it would be nice to live in a smaller town on the other side of the mountains.
Which will grow more, Wenatchee or East Wenatchee? Why? Your answer should include econ words like "supply," "
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