Three bid rent curves for office space, residential areas, and agriculture are given below
Po=8-2x
Pr=5.5-0.5x
Pa=2-0.15x
Calculate the size of the city.
Suppose the mayor is suggesting an increase in gas taxes that would affect the commute costs and thus bid rent curves for residents Pr=5.5-0.75x. Calculate the new size of the city.
Design another policy that could achieve the same reduction in city size as in b)