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1. This question is about urban spatial structure In this model, households live in a city and must commute a distance, 11:, from their residence

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1. This question is about urban spatial structure In this model, households live in a city and must commute a distance, 11:, from their residence to their workplace. Commuting cost per mile are given by, t. There are two goods in this model, housing, q, and non-housing c. The price of housing is given by p. The household maximization problem that describes this environment is, max ln(c) + ln(q) at: at. c+pq=ytzr Firms in this model construct housing using land, i, and materials, N. The production function for housing is Cobb-Douglas, H(N,l) =1\" N1_', 0

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