Multiple Choice

Consider a mixed neighborhood equilibrium:

Suppose all households prefer to live near blue households (as stated in the lecture).

Region1 is 75 percent blue and 25 percent green; Region2 is 75 percent green and 25 percent blue. A green household will be indifferent between Region1 and Region2 because [_____] is lower in [_____].

lot size; Region2

land price; Region1

land price; Region2

utility; Region1