ECON 155 Lecture Notes - Lecture 11: Urban Structure, Urban Land, Soil Fertility
Document Summary
An x% increasein demand means at a given wage employers want to hire more. Two equations elastictiy of demand and elastictiy of supply. Now we will go over the internal spatial structure of cities and why they have characterist patterns. Rising population density/ building height nearer the center. Falling housing prices further from center (per square foot) Segregation of and uses into office, residential, manufacturing zones. Becomes more dense only when getting rid of the past housing styles. Manufacturing establishments and highways ing for y = % increase in wages or yw* David ricardo credited with idea that difference in afr fertility does not explain diff in farm income they explain diff in landlord incomes. Comp among farmers leads to higher bid rents for more fertiile land. Even if you are a peasant on fertile land. Rent rations property to whoever willing to pay highest.
