Question
Covid-19 has reduced the fraction of people who commute and made more people comfortable with communication technologies such as Zoom and Teams. With more companies
Covid-19 has reduced the fraction of people who commute and made more people comfortable with communication technologies such as Zoom and Teams. With more companies shifting their employees to work from home more often, this reduction can be expected to persist even if there is no change in the number of jobs in the city. Fewer commuters on the road reduces the cost of commuting for the people who do commute. Suppose that the shift in the cost of commuting is proportional to percentage reduction in the fraction: e.g., if there are 25 percent fewer commuters then the cost of commuting drops by 25 percent. Show how this change in commuting would affect on the optimal population of a city the equilibrium population of a big city.
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