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I (40 pts) Consider the land use model by von Thilnen with three activities hypothetical A. B and C'. Explain and demonstrate graphically each of

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I (40 pts) Consider the land use model by von Thilnen with three activities hypothetical A. B and C'. Explain and demonstrate graphically each of these situations: a. An increase on the demand for activity C , keeping everything else constant- b. A decrease on the transfer costs ofactivity A. keeping production costs and price constant. c. Economic growth on the urban area. keeping production costs and transfer costs constant. Plot a constant net revenue rent for agriculture. as in the lecture notes. Explain what happens to the city edges

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