Question

Explain how economic models predict a) Land use patterns, b) bid rents, c) lot size, d) building heights, e) population density within the monocentric city.

Answer 1

A)The land change models describe and explain changes in the use of land cover and land use.Land change models are valuable in development policy,helping guide more appropriate decisions for resource management and the natural environment at a variety of scales ranging from a small piece of land to the entires spatial extent.Moreover within land cover environmental and socio economic data have increased oppourtunities for land change modelling to help support and influence decions that affect human environment systems as national and international attention increasingly focuses on issues of global climate change and sustainability.

B)The bid rent theory refers to how the price and demand for real estate change as the distance from the central business district increases.It states that different land users will compete with one another for land close to the city centre.This is based upon the idea that retail establishment wish to maximize their profitability so they are much more willing to pay more for lann and less no further away from this area.The concentric land use structure thus generated closley resembles the urban.

C)It balances the costs of the inventory against the cost of setups over a range of batch quantities.Most factories are less than idea where significant setup costs exist batch quantity is still an issue and economic lot size provide important insights for rational decisions.It has a model of three components setup cost,direct cost and carrying cost.This facilitates calculation and aids understanding.

D)The skycraper index is a whimscical concept put forward by andrew lawrence a property analyst.Which showed that the world's tallest buildings have risen in the time of economic downturns.The buildings may actually be completed after the onset of the recession or later when another business cycle pulls the economy.Studies has shown that the height of buildings cannot be used to acurately predict recessions or other aspects of the business cycle,but the GDP can predict the height of building construction.

E)The goal of this is to explain the spatial distribution of population ina city.main mechanism is the relationship between commuting costs,housing price and housing consumption and the open city comparative are easier because utility is fixed due to population flow.Therefore compute comparative statics directly from the varaiable equations without worrying about the indirect effect of utility.