6. Consider the von Thunen Model discussed in class. Alternative uses of one acre of land around a city is summarized as follows (copied from the slides): Remember that land-use pattern Revenue Nonland cost of production Cost of transportation Milk $1000 $200 $80/ mile Wheat $800 $200 $30/ mile Potato $600 $200 $10/ mile around the city is determined by these conditions: land close to the city will become dairy farms; land further away from the city will be wheat farms; and land even furlher away will be potato fields. 1. First draw the bid-rent curves for the three sectors. Mark the intersection points. (5 pts) 2. Using the graph with bid-rent curves, discuss how each of the following change affects land use patterns around the city: (a) People just learned that eating wheat is healthy. As a result, the price of wheat (pro- duced on one acre of land) in the city increases from $800 to $900. (5 pts) (b) A new model of truck just became available which reduces the transportation cost for potato from $10 to $5 per mile. (5 pts)