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g) 11) Clearly state your proposed policy (which minimizes the area affected and, hence the impact on housing rent) by completing the following sentences: FactoryA

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g) 11) Clearly state your proposed policy (which minimizes the area affected and, hence the impact on housing rent) by completing the following sentences: FactoryA locates at x = . Factory B located at x = Present a clearly labelled graph for housing rent behavior in the city with the chosen location(s) for Factory A and Factory B as proposed by the policy. Explain why the landlords, who do not even live in this city, are not happy about the factories being located in the city, irrespective of the policy being adopted. (3-5 sentences) Suppose that the city government (inuenced by the landlords) demands tax-payment from the factories equal to the net change in housing rents in the city (consider both losses and gains in housing rent due to the factories), depending on their location. Calculate how much the factories will need to pay if they locate (l) in part (a) i.e. FactoryA atx = 4 and Factory B at x = 13 (2) in part (e) as suggested by the proposed pollution-minimizing policy

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