No writing all drawing of graphs
1. How would you expect the division of land between office firms and manufacturing firms— and their relative locations—to change if per unit freight costs decline (that is, it becomes cheaper to ship manufacturing goods)? Use a single bid-rent diagram to illustrate your answer.
2. Suppose a city restricts the heights of residential structures. The maximum height is four stories, the height that would normally occur at a distance of five miles from the city center. Draw two residential bid-rent curves on the same graph, one for the city in the absence of height restrictions and one with height restrictions.