Question
True, false or uncertain? Justify your response to each of the following statement b) Covid-19 has reduced the fraction of people who commute and, with
True, false or uncertain? Justify your response to each of the following statement
b) Covid-19 has reduced the fraction of people who commute and, with more companies
shifting their employees to work from home more often, this reduction can be expected to persist
even if there is no change in the number of jobs in the city. Fewer commuters on the road
reduces the cost of commuting for the people who do commute. Suppose that the shift in the cost
of commuting is proportional to percentage reduction in the fraction: e.g. if there are 25 percent
fewer commuters then the cost of commuting drops by 25 percent. The change in commuting
would have no effect on the optimal size of a city, and it would decrease the equilibrium size of a
big city and increase the size of some small cities
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