Consider our modifications of the Urban Growth Model and policies that can limit Urban Sprawl.

a. Graph the model of a citys edge, where, calculating and r=$28 and =800.5when x = 0.

b. Now, imagine a city planner imposes a development tax equal to the value of the open space amenity b = $5. Graph the changes, including .+and the new

c. What is the net effect on population density, rents, and dwelling size? What can we expect to happen to r?

d. Suppose the development tax changes the urban land rent curve to, what will =820.5be the effect on the citys edge? Find, and talk about discuss the costs and benefits associated with the development tax.