Problem: [Suburbanization/Decentralization] Synthesize your answers to given Questions summarize the major economic forces that underlie the increased decentralization (i.e., suburbanization or so called sprawl) of U.S. urban areas, and then express your thoughts as to whether the sprawl observed in many U.S. urban areas is ‘‘excessive.'' Back up your opinion with a clear concise argument, and be prepared to debate the issues.

Questions 1: Describe the two possible effects of transportation cost reduction (per mile, per person) on both relative and absolute land values within a monocentric homogeneous city. Which one do you think dominates in the real world? Explain.

Questions 2: Describe the two possible effects of income growth on both relative and absolute land values within a monocentric homogeneous city, considering both direct and indirect effects. Which one do you think dominates in the real world? Explain.

Questions 3: If there are no constraints on the area of a city, what does the monocentric city model say about the relative growth of land rents in the center versus the edge of a city that is growing either in population or in income?

Questions 4: The classic monocentric city model assumes that all commuting is into the city center. Consider a two-person household in which one person commutes to the city center while the other commutes in the reverse direction to the edge of the city.

a. Draw the household's bid-rent function assuming round-trip commuting costs are the same in either direction.

b. Now assume that round-trip commuting costs are higher commuting in to work in the CBD.