company mines 420,000 tons of coal per year in a rural county. The coal is worth $63 per ton. The average price for a 2,000-square- foot house with three bedrooms more than 20 km away from the mining site in this county is $210,000. The average price for a similar, 2,000-square-foot house with three bedrooms within 4 km of the mine is 4 percent lower. Using comparative statics, what is the effect of mining on home prices in this county? Mining changes the price of a 2,000-square- foot home (with three bedrooms) by $ (Round your response to two decimal places and use a negative sign it necessary)

company mines 420,000 tons of coal per year in a rural county. The coal is worth $63 per ton. The average price for a 2,000-square- foot house with three bedrooms more than 20 km away from the mining site in this county is $210,000. The average price for a similar, 2,000-square-foot house with three bedrooms within 4 km of the mine is 4 percent lower. Using comparative statics, what is the effect of mining on home prices in this county? Mining changes the price of a 2,000-square- foot home (with three bedrooms) by $ (Round your response to two decimal places and use a negative sign it necessary)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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