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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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