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As a city expands it needs additional transport infrastructure. (Here I make no distinction between more roads or more rail.) If the government decides not to build that infrastructure, there will increased congestion which will increase commuting times. In the situation of an increase in population being accompanied by an increase in commuting cost, what will be the effect of this on the urban rent gradient? Would existing residents win or lose from the decision not to build new infrastructure? Consider this question in terms of:
• Renters - that is, assuming all residents rent
• Landlords - as 65% of houses are owner-occupied, a substantial number of households are 'both' tenant and landlord. You should be able to use the closed urban model to answer this question
Test the hypothesis that the slope is 28 against the alternative that it is greater than 28 at the 5% significant level. Write the hypotheses
The monthly market demand curve for calculators among economics students is given by P=100-2Q, where P is the price per calculator in dollars and Q is the number of calculators purchased per month. Find the price/quantity combination that would maxim..
On March 31, 2008, Hawaii lost 15 percent of its air service as aloha airlines and the cheap-flight airline ATA suddenly shut down. Stranded travellers were offered flights to west coast cities $1000 one way. Under what conditions the $1000 fare woul..
"In a recent 'earnings call,' a teleconference call to shareholders in which the CEO reports and discusses quarterly earnings per share, Coca-Cola's CEO Muhtar Kent bragged about 'winning' market share from rival beverage company PepsiCo. The pursuit..
(a) Is the plant economically justifiable to the firm without the subsidy? What is the PWI? (b) What is the annual subsidy?
Suppose firm 1 and firm 2 each produce the same product and face a market demand curve described by Q= 5000 - 200P. Firm 1 has a unit cost of production c1 equal to 6 whereas firm 2 has a higher unit cost of production c2 equal to 10. what is the Ber..
In the final round of a tv game show, contestants have a chance to increase their current winnings of $1 million to $2 million. if they are wrong, their prize money is decreased to $500,000. A contestant thinks his guess will be right 50% of the time..
Explain why any point on an economy’s PPF must be associated with a point on the production efficiency locus in the Edgeworth box diagram.
This year your income from only two years investment was $25,000 and you have to wait for one more year to earn $45,000 and another two years for taking $90,000. If the interest rate was fixed at 13.i ii % per year compounded continuously, how much d..
If the shares of income to capital and labor are 0.2 and 0.8, respectively, how much did output grow?
Last week, jorge purchased a $45 ticket to a soccer game scheduled for this Thursday. If he attends the game, he'll miss three hours of work, where he's paid $15per hour. While he can't return the ticket, he can resell it online for $30. Attending th..
Organized labor repeated its success in three previous presidential elections by delivering a very large majority of union members for Obama. The sit-down strike helped the CIO to obtain union membership in the 1930s, and it was soon approved by the ..
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