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To start, let the consumer utility function be given by q^1/2c *1/2(a^1/2), where c is consumption of bread (a catch-all commodity), q is real estate

To start, let the consumer utility function be given by q^1/2c *1/2(a^1/2), where c is consumption of "bread" (a catch-all commodity), q is real estate (housing), and a is amenities, which are valued by the consumer given that a's exponent is positive. Letting y denote income, it can be shown that the consumer demand functions for bread and housing are given by c = y/2 and q = y/(2p), where p is the price per unit of real estate

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