Urban economics homework Assignment Example | Topics and Well Written Essays - 500 words - 3

Urban economics homework - Assignment Example b) Utilities are a typical household expense that can drive a person’s monthly expenses up or down, depending on the season. Therefore, it is not possible that all the 50 residents can have the same level of utility. c) Capitalization causes the equilibrium, and the price per unit housing may differ following the fact that, equilibrium between the two jurisdictions, and poor households are the majority in the inner parts of an urban area where they vote for a low public service level. At the same time in the suburbs, the majority households are rich and they vote high public service. However, the commuting cost, land prices, and income can adjust making both case of households indifferent between jurisdictions. a) In respect to the household wealth complements, people prefer to live in communities with a higher level of public good and higher taxes than others. The economic intuition for this behavior can be attributed to the source and level of income that a households gets on a monthly base or annually. This would differentiate between the two types of household (Balchin, Paul, David Isaac, and Jean). b) As mentioned earlier in case 1 the utility level depends on a season. Again the amount of income comes in where by high income earners utility level is likely to be high compared to that of low income earner. c) The equilibrium level in terms of price per house cannot remain constant. This is because factors such as the commuting cost, land prices, income, environmental conditions, security, house demand and the quality of a those house units keeps on changing. d) It is unlikely that the wage level between the two types of households is the same following the fact that households with above-average income pay high taxes than they get while households with inferior than average income get more than their tax liability. Households with higher incomes demand more of the public good, they are likely to pay high taxes due to rising income if