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Question 5 (1 point) Assume the basic urban model holds, with a slight tweak. Suppose everyone in the city has identical preferences but half
Question 5 (1 point) Assume the basic urban model holds, with a slight tweak. Suppose everyone in the city has identical preferences but half the residents are rich and half are poor. Assume that rich and poor face the same commuting cost per km, t. What can we conclude about where the rich and poor will live? Poor will occupy housing closest to the center, while rich will live further out from the center. Rich and poor will mix throughout the city. The model can't predict, with the information given, the residential pattern that will result. Rich will occupy housing closest to the center, while poor will live further out from the center.
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