SECTION 2. Short Answer Questions. 1) (10 points total) Consider the neighbourhood sorting model discussed in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
SECTION 2. Short Answer Questions. 1) (10 points total) Consider the neighbourhood sorting model discussed in class. Suppose that everyone prefers rich neighbours to poor neighbours. Assume that there are 10,000 residents in a city, 5000 of whom are rich and 5000 of whom are poor. Suppose that there are 2 neighbourhoods with 5000 identical housing units in each neighbourhood. All residents of the city must live in one of the two neighbourhoods. a) 5 points Draw a set of rent premium curves (one for rich people and one for poor people) that leads to complete income integration in equilibrium. Clearly label the axes of your diagram and clearly label each rent premium curve. Vague or messy diagrams may lose points. b) 5 points Draw a set of rent premium curves (one for rich people and one for poor people) that leads to partial income integration in (a stable) equilibrium. Clearly label the axes of your diagram and clearly label each rent premium curve. Vague or messy diagrams may lose points. SECTION 2. Short Answer Questions. 1) (10 points total) Consider the neighbourhood sorting model discussed in class. Suppose that everyone prefers rich neighbours to poor neighbours. Assume that there are 10,000 residents in a city, 5000 of whom are rich and 5000 of whom are poor. Suppose that there are 2 neighbourhoods with 5000 identical housing units in each neighbourhood. All residents of the city must live in one of the two neighbourhoods. a) 5 points Draw a set of rent premium curves (one for rich people and one for poor people) that leads to complete income integration in equilibrium. Clearly label the axes of your diagram and clearly label each rent premium curve. Vague or messy diagrams may lose points. b) 5 points Draw a set of rent premium curves (one for rich people and one for poor people) that leads to partial income integration in (a stable) equilibrium. Clearly label the axes of your diagram and clearly label each rent premium curve. Vague or messy diagrams may lose points.
Expert Answer:
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
Students also viewed these economics questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
In the calculation of the power in an a.c. circuit using the formula W = EI cos , errors of +1% in I, 0.7% in E and + 2% in occur. Find the percentage error in the calculated value of W when = 1/3...
-
Consider four advertising campaigns where for each one it is canceled before launch with probability 0.10, it is launched but canceled early with probability 0.18, it is launched and runs its...
-
In problem use Theorem 7.4.1 to evaluate the given Laplace transform. {t 2 cos t} Theorem 7.4.1 If F(s) = {f(t)} and n = 1, 2, 3, . . . , then
-
Mind & Motion entered into a real estate purchase contract (REPC) with Celtic Bank to buy a large piece of the banks foreclosed property. Although the county had approved plans to construct...
-
Most Company has an opportunity to invest in one of two new projects. Project Y requires a $ 350,000 investment for new machinery with a four- year life and no salvage value . Project Z requires a $...
-
The graph below shows the number of people who consume different numbers of lollipops per year. What is the median number of lollipops consumed? Number of People 3 27 24 21 18 15 12 96 Number of...
-
Fourth-Sixth-Twelfth Bank currently pays an annuall dividend of $1.40 per share. After extensive analysis, you forecast that the Bank's stock will continue to pay the $1.40 dividend for four years....
-
What will happen when the following code fragment is executed: final int MAX = 5; double[] willis = new double [MAX]; for (int index = 0; index
-
Investigate and report the cost of childbirth in New Jersey, medical care for an infant during the first year, and the cost of essential items required for a baby. Investigate the cost of childbirth...
-
Evaluate the limits below, if they exist. Show some working if you apply arithmetic rules for limits and cite any other results from the course that you use to justify your answers. 11-700 (b) lim...
-
What is the price (per $1,000 of face value) of a seven-year 8 percent coupon bond? Assume that the discount rate is 6 percent and that coupons are paid annually at the end of the year. 2. Imagine...
-
Two charged particles are a distance of 1.72 m from each other. One of the particles has a charge of 6.75 nC, and the other has a charge of 4.22 nC. (a) What is the magnitude (in N) of the electric...
-
In Thomson's experiment on cathode rays, the speed of the cathode ray particles that were undeflected through perpendicular magnetic and electric fields was found to be 4.0 x 107 m/s. The magnetic...
-
1. Calculate the following unknown quantities. (a) i = 0.04, m = 12. Find f. (b) i = 0.02, m = 4. Find an equivalent annual interest rate. (c) P = $1500, n = 10, S = $1750, semi-annual compounding....
-
For each equation, (a) Write it in slope-intercept form (b) Give the slope of the line (c) Give the y-intercept (d) Graph the line. 7x - 3y = 3
-
Suppose you have an income of $100 to spend on goods x1 and x2. A. Suppose that you have homothetic tastes that happen to have the special property that indifference curves on one side of the 45...
-
Entrepreneurial Skill and Market Conditions: We often treat all firms as if they must inherently face the same costsbut managerial, or entrepreneurial, skill in firms can sometimes lead to a decrease...
-
A: Suppose a firm employs labor and capital k to produce output x using a homothetic, decreasing returns to scale technology. (a) Suppose that, at the current wage w, rental rate r and output price...
-
Michael is in his last year of undergraduate studies in human services and economics and is conducting original research for his final research project. As part of his project, he is required to keep...
-
Keza is studying online for a masters degree in Management and wishes to undertake her research project in her home country, Rwanda, where she works as a civil servant. Due to her high pressure job,...
-
You wish to study the reasons why car owners join manufacturer-sponsored owners clubs. You choose to use a qualitative methodology and narrative inquiry research strategy involving unstructured...
Study smarter with the SolutionInn App