Decide if each statement is true or false 1.Consider adding a freeway to the simple model...

Decide if each statement is true or false

1.Consider adding a freeway to the simple model of monocentric cities introduced in Chapter 2 of the text. Suppose Allie lives 10km away from the CBD and takes a radial commute to work each day in the CBD. Suppose Lily lives in a different location, also 10km away from the CBD, but Lily uses the freeway to commute to work each day in the CBD.

True or False: In this example, we expect that Allie will pay higher rent per square foot of housing than Lily.

2.Consider a city with two discrete income groups: rich and poor. The only factors that determine where household from each group decide to live (in terms of distance from the CBD) are: income, desired size of dwelling, and costs of commuting.

True or False

Solutions

Expert Solution

1.
Radial commute to CBD may be taxing, taking longer and often cumbersome as well at times. Freeway commuting, on the other hand is quick, fast and convenient too (for it will require Lily to change less vehicles per day or not at all, if compared to Allie). Assuming the commuting convenience to be the only factor deciding the housing rentals, Lily is enjoying on commuting more than Allie, so Lilly will have naturally to pay higher for housing. You see, housing accommodations located on freeways will be in greater demand and therefore these will be more expensive in lieu of the commuting convenience they bring for one. Answer is FALSE.

2.
Three parameters are given in this question, namely income, desired size of dwelling, and costs of commuting. A rich household doesn't mind the cost of commuting, or does it? A poor household will certainly mind its income and cost of commuting too, but it cannot desire for larger housing because of the affordability issues. A poor's choice will be based upon its own income, rentals and commuting costs too. Therefore, we see that we can not put rich and poor households in the same basket. Answer to this is also FALSE.

Rahul Sunny answered 2 years ago

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