1 mark for each question

1. What are the two fundamental equilibrium conditions of the Alonso-Muth-Mills (AMM) model? 2. Why is a small decline in the price per square meter in a suburban location enough to compensate for a longer commute? PP 3. What can you say about the ratio of price per square meter to land rent (), as distance to rr the city centre declines (x), if competition always results in zero economic profits? 4. What prediction does the AMM model make for how the total rent for a small CBD dwelling compares to the total rent for a larger suburban house? 5. In the basic AMM model, in the absence of time costs, the slope of the price curve is -t/q. What are the predictions of the model for where lower socioeconomic groups locate