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Assume low income households out-bid high-income households close to the CBD. Both types of households consume a fixed amount of land. Assume that the bid
Assume low income households out-bid high-income households close to the CBD. Both types of households consume a fixed amount of land. Assume that the bid curve of high-income households shifts up (higher willingness to pay). Also assume that low-income households are not mobile. Draw a graph showing the allocation of land among the two types of households before and after the increase.
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