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Rugby is a city in North Dakota which the land rent for agriculture is $2. Bid rent curve for businesses is given by 10 -
Rugby is a city in North Dakota which the land rent for agriculture is $2. Bid rent curve for businesses is given by 10 - 2x and for residents by 5 - x/2, where x is the distance to the city center in miles. The mayor plans to expand the bus transport system in the city, so that residents are able to outbid agriculture rent price until 10 miles away from city center. Please explain what would happen to the bid rent curves in this city following what you have learned in class and/or reading the book.
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