1 (a) (20 marks)
With no consumer substitution G and h are both exogenous variables, as required for
equilibrium utility.
Residents are all identical and spend their monthly wage w on commuting cost (tx), nonhousing goods consumption (G) and on housing h
Factor Substitution Mathematical Model
Numerical Example
Assume that travel costs increase with at a constant rate so that = . Also, the floor
area in each firms office building is fixed at = 10,000 square metres (one hectare). The
production function for
University of Toronto
Faculty of Arts and Science
April 2015 Examinations
ECO 333H1S
Duration: 3 Hours
Examination Aids: Drawing instruments, non-programmable calculators
Instructions: on your answer books, your surname must be printed clearly on the left
ECONOMICS 333 (Urban Economics): Winter 2016 Syllabus
Course Instructor: Peter Tomlinson PhD ([email protected] or [email protected]).
Office Hours for Peter Tomlinson: Wednesdays 3:30 5:00 pm Innis College caf, beginning January 13.
There m
December 2013 Midterm Answers
Question 1:
a) (2 marks) R b (x,w) is derived as follows:
(200)(300) = 22,000 + (10)(300)x + 10w + 0.5R b (x,w)
R b (x,w) = 76,000 6,000x 20w
b) (5 marks 3 marks for deriving x 1 (w) and 2 marks for deriving R r (x,w)
First s
August 2013 Final Exam Answers
Question 1 33 marks:
a) (9 marks 2 marks per calculation box and 1 mark for verifying community sizes and
numbers) Due to the constraints on community size, Safeville will have one community of
10,000 and Riskville will have
Solutions: Term Test July 16, 2015
ECO 333 (Urban Economics)
Question 1
Using a separate diagram for each of the three possible rents, show the rms capital input in dollars and
land input in hectares.
1 (a)
The zero prots condition implies that:
Revenue =
Answers: Term Test 2
1.
(a) The efficient consumption A* is at the intersection of MSC = 90 and MSB. MSB has 3
ranges. In the range from A = 0 to A = 40 (where MBs hits zero) all three residents
MBs are in the MSB function. In this range the MSB equation
Urban Economics (ECO333) Term Test 2
March 11, 2015 6:10pm - 7:10pm
Peter Tomlinson, Instructor
Instructions: on your answer book, your surname must be printed clearly on the left side
of the cover pages name line (where you see surname under the line); y
University of Toronto
Faculty of Arts and Science
June 2015 Examinations
ECO 333H1F
Duration: 3 Hours
Examination Aids: Drawing instruments, non-programmable calculators
Instructions: on your answer books, your surname must be printed clearly on the left
University of Toronto
Faculty of Arts and Science
June 2014 Examinations
ECO 333H1F
Duration: 3 Hours
Examination Aids: Drawing instruments, non-programmable calculators
5 MARKS of the 100-mark total for this test will be allocated to answers complying wi
June 2014 Exam Answer Document
1 (a)
This question is based on the mathematical factor substitution notes posted on Course
documents.
In subpart (i) the isoquant equation is the same isoquant equation shown as equation (4) in the
notes:
(4)
= 100,000 .
Th
(185,000 148,000) / 0.21 = 176,190. (If the L value is left unrounded before taking this step
the R* answer will be 177,520, close enough).
At x = 2 the solution for L* is 0.33 hectares, with C* = 132,000. Thus R* =
(165,000 132,000) / 0.33 = 100,000. (If
Urban Land Markets with Factor Substitution
January 2014
In what follows here, we will elaborate on the analysis of land-market equilibrium
with factor substitution, as outlined in OSullivans text. Starting with a model in
Chapter 6 of the text, we derive
Notes on Urban Public Finance
July, 2014
The key questions analyzed in these notes are as follows:
1. What is the efficient number of residents to share consumption of a local public good?
2. Can efficiency be improved if independent towns consolidate to
Introductory Notes on Rectangular Land Market Model
November, 2013
These notes elaborate on a land-market model presented in OSullivans
textbook Urban Economics.
Building on the textbooks analysis, our focus will be on these key questions:
What is the imp
Impact of Taxes in Factor Substitution Model
March 7, 2014
This note analyzes impacts of land and capital taxes, using the factor substitution model to illustrate.
That model is described in the "Notes on Factor Substitution" document (also posted on Cour