B ii only c iii only d i and

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Unformatted text preview: e justification will receive zero points. Better justification will earn a higher score. 4 Note that my answers are often more detailed than you needed to get full credit. 1) 5 points Improvements in telecommunications, ceteris paribus, will lead cities to become more decentralized. Uncertain. Telecom advances allow people to communicate more easily at a distance than they could previously. If that was the only impact of telecom, cities would become more decentralized as people’s willingness to pay to live further out from the center of the city would rise. In this story, telecom is a substitute for face- to- face meetings. However, it’s also possible that telecom is a complement to face- to- face meetings, because advances in telecom may facilitate a greater number of contacts between individuals and/or firms. So while telecom may make fewer meetings per contact necessary, it can increase the total number of meetings if the number of contacts rises. Telecom may also lead to more clustering if it makes living in close proximity easier. Many fled to the suburbs as life in cities became harder, due to increased crime, congestion, pollution, etc. But telecom can make cities easier to live in. Technology that makes traffic flow better (by warning drivers of bottlenecks); that makes parking easier (by locating open spots for you, or by letting up update your meter payment from your cellphone); or that makes entertainment options easier to identify (think of finding restaurants on Yelp) makes cities more appealing places to be. Remember, I talked about “crowding innovations” early in the course (things like water treatment that made it easier for lots of people to live in close proximity)? This is an example. 2) 5 points An increase in demand for labour and a decrease in the supply of labour in a city will necessarily cause the equilibrium quantity of labour employed to rise. False. As you can see in the diagram below, this combination of curve shifts can cause the equilibrium quantity of labour employed to fall (see Eq’). It could rise, fall, or stay the same. We need to know the magnitude of the shift of each curve to say what will happen to equilibrium employment. On the other h...
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This note was uploaded on 09/26/2013 for the course MATH 102 taught by Professor Maryamnamazi during the Spring '10 term at University of Victoria.

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