s Consider the following version of the 'closed city' Alonso-model where identical consumers have Cobb-Douglas-preferences (Ci, ) = - 4(1-0)1-a G"CHi-", where CMi denotes consumption of the manufacturing good, Ci consumption of housing, and 0 < a < 1. The net income of workers is given by yi = w; - Tri, where w; is the wage, ri the distance to the CBD, and t the commuting cost per unit of distance travelled. The price of housing is denoted by PHi(ri) and the price of the manufacturing good by Pmi- (1) State if the commuting costs are specified as iceberg or direct monetary costs! (1 point) (2) Choose the manufacturing good as the numraire. Characterize and solve the utility maximization problem, i.e., derive the demand functions for the manufacturing good and for housing and derive the indirect utility function. (5 points) (3) Analytically derive the schedule of housing