Suppose that there are two cities that are alike in every way except that one city has significantly better weather than the other city. Call the city with good weather Good-Weather City (GWC) and the other Bad-Weather City (BWC) . Assume that the median price of a home in the two cities is originally the same. If the marginal utility of living in GWC is 500 and the marginal utility of living in BWC is 300, to make themselves better off economic theory tells us that
A) at least some people will move from BWC to GWC, which will make housing prices rise in GWC and BWC.
B) at least some people will move from GWC to BWC, which make housing prices rise in BWC and GWC.
C) at least some people will move from BWC to GWC, which will make housing prices rise in GWC and fall in BWC.
D) at least some people will move from GWC to BWC, which will make housing prices rise in BWC and fall in GWC.
Correct Answer:
Verified
Q118: This is the solution to the diamond-water
Q119: The diamond-water paradox holds that often things
Q120: Economist David Friedman pointed out that
A)the endowment
Q121: Exhibit 20-5 Q122: The MU/P ratio for good X is Q124: Exhibit 20-5 Q125: Consumer equilibrium exists when an individual Q126: Exhibit 20-5 Q127: The marginal utility curve for units 1 Q128: Exhibit 20-4 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)can be