Consider the Dinks (double income, no kids). Mr. Dink commutes to a job in the city center (x=0), while Ms. Dink commutes to a suburban subcenter four miles east of the city center. The Dinks consume the same quantity of housing at all locations. Travel speed is the same in both directions. a . Draw the household’s housing-price curve up to a distance of seven miles. b. Draw the housing-price curve under the assumption that the speed of inward commuting (toward the city center in the morning and away from the center in the evening) is half the travel speed of outward commuting. c . Draw the housing-price curve under the assumption that travel speed is the same in both directions, but Ms. Dink has a higher opportunity cost of travel time.

QUESTION:

Dink Commuting

Consider the Dinks (double income, no kids). Mr. Dink commutes to a job in the city center (x = 0), while Ms. Dink commutes to a suburban subcenter four miles east of the city center. The Dinks consume the same quantity of housing at all locations. Travel speed is the same in both directions.

a . Draw the household’s housing-price curve up to a distance of seven miles.

b. Draw the housing-price curve under the assumption that the speed of inward commuting (toward the city center in the morning and away from the center in the evening) is half the travel speed of outward commuting.

c . Draw the housing-price curve under the assumption that travel speed is the same in both directions, but Ms. Dink has a higher opportunity cost of travel time.