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)

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter9: Price Takers And The Competitive Process

Section: Chapter Questions

Problem 11CQ

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