Business, 17.03.2020 03:03, maymaaz

Suppose that landowners have the power to restrict x , the distance to the edge of the city, in order to increase the land rent they earn. Suppose that, with no restriction, the urban land rent function is given by r = 100 – x , where x is distance in blocks to the CBD. Suppose that agricul- tural land rent rA is equal to 20.

Show the new land-rent curve in your diagram, and indicate the area corresponding to the land-rent loss from the restriction, as well as the additional area showing the land-rent gain.

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Suppose that landowners have the power to restrict x , the distance to the edge of the city, in orde...