Question
Wenatchee is a town on a large river.On the other side of the river is East Wenatchee. Wenatchee is pretty much hemmed in on all
Wenatchee is a town on a large river.On the other side of the river is East Wenatchee. Wenatchee is pretty much hemmed in on all sides by mountains.East Wenatchee, on the other hand, sits on a large plateau surrounded by wheat fields.
Assume that housing in Wenatchee and housing in East Wenatchee are what economists call "perfect substitutes."This means basically that people don't care whether they live in Wenatchee or East Wenatchee.Then imagine that in the nearest big city there is a pandemic followed by a bunch of riots. This causes a lot of people to decide it would be nice to live in a smaller town on the other side of the mountains.
Which will grow more, Wenatchee or East Wenatchee?Why?Answer should include econ words like "supply," "demand," "quantity supplied," "quantity demanded," etc. It should include a graph or two.
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