What can we derive from the fact in terms of crowdedness

Assignment Help Macroeconomics
Reference no: EM13199608

A city called "Ludwig" is monocentric. The rate at which the price of apartments falls there as a function of the distance of the apartments from the central business district, isn't linear.

What can we derive from this fact in terms of the crowdedness of the population as a function of the distance from the central business district?

The crowdedness of the city is fixed, and has no relationship to the distance from the central business district. In other words, as we go further and further from the central business district, the level of crowdedness of the apartments remain unchanged.

Reference no: EM13199608

Questions Cloud

Which program has the least damaging effect on gdp : Two policy programs are proposed: (1) eliminate the deficit by cutting government spending and (2) eliminate the deficit but raising taxes. Which program has the least damaging effect on GDP
Determine what is the value of the multiplier : Consider the following model of a closed economy (Smallville): MPC = 0.8 - 0.01Y (marginal propensity to consume) C = MPC x YD (consumption function) YD = (Y - T) (disposable income) I = 500 (investment spending) G = 1,500 (government spending)
What is the cpi : The table below shows the market basket quantities and prices for the base year year 1.Base year 1 Price in price Quantity base year yr 2 Product.
Find the equilibrium level of real gdp for smallville : Find the equilibrium level of real GDP for Smallville. Note: you will have to solve a quadratic equation - and GDP cannot be negative, for obvious reasons. Y = AD (equilibrium condition) T = 1,200 (taxes - non-income)
What can we derive from the fact in terms of crowdedness : The crowdedness of the city is fixed, and has no relationship to the distance from the central business district. In other words, as we go further and further from the central business district, the level of crowdedness of the apartments remain un..
Equation to derive price level differ from its initial value : Consider an economy with a constant nominal money supply, a constant level of real output Y = 100, and a constant real interest rate, r = 0.10.
How much percent can we expect the price of rental apartment : How much percent can we expect the price of rental apartments to rise after the law is enforced, if we know that we expect an additional rise in demand for rental apartments which will cause an additional 20 percent rise in the number of apartment..
What is the sacrifice ratio in the economy : Suppose that an economy has the Phillips curve p = p-1 - 0.5(u - un), and that the natural rate of unemployment is given by an average of the past two years' unemployment: un = 0.5(u-1 + u-2).
Why can we be sure that no household will choose electricity : Kristina knows that deadweight loss is something that this small town can do without. She suggests that each household be required to pay a fixed amount just to receive any electricity at all, and then a per-unit charge for electricity.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Define the economics terms

Define the Economics terms, national accounting identity, Hodrick Prescott filter and what it does,  Cobb Douglas production function

  Illustrate what are the best goals for the fed

Illustrate what are the best goals for the Fed. Should it lean toward restraint or toward expansion.

  Income and substitution effects

After Iraq invaded Kuwait, gasoline prices increase dramatically--up to 50 percent. There were many effectrs of the increased price of gasoline.

  Two items which are complements in consumption

If you have two items which are complements in consumption and the price of one of them goes up, what happens to the demand of each of the items.

  Differences among an open and closed economy

Illustrate what are the major differences among an open and closed economy

  Elucidate explain why after such unprecedented economic grow

Elucidate explain why after such unprecedented economic growth, technical advance economies still experience economic cycles and stagnation.

  Estimate before-tax charcoal price

Give the before-tax charcoal price and quantity exchanged. Give the after-tax charcoal price to buyers, the quantity exchanged, and total tax revenues.

  Assume venezuela imports tv sets at a price

Assume Venezuela imports TV sets at a price of $150 each. Under free trade, how many sets does Venezuela produce, consume, and import.

  What are implications for the design of monetary policy

What are the implications for the design of monetary policy frameworks and what domestic factors does the Report identify as likely to affect the UK economy?

  Airline decision to remain in business

Airway Express has evening flight from Los Angeles to New York with average of 80 passengers and return flight the next afternoon with average of 50 passengers. Should the airline remain in business?

  Determine eventual total change in reserve

Suppose a new deposit to the US banking system of $1000. Assume that all commercial banks have a target reserve ratio of 10 percent and there is no cash drain.

  Bundling pricing for three types of consumers

You are the manager of a firm that produces products X and Y at zero cost.  You know that different types of consumers value your two products differently.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd