Urban economy Assignment Example | Topics and Well Written Essays - 250 words

Urban economy - Assignment Example The buildings are taller to make use of space and accommodate the main businesses that give the city its developmental characteristic. Gas price determines the construction rate of city structures, a high price less development and vice versa (Florida & Mellander, 2014). Rising incomes have a direct proportionality effect on cities because the development will be focused to assist the well-being of the income earners. Land prices take long because of the economic speculation that is linked to profitability of the land. Sprawl is considered a market where decision makers have direct impact to the spatial growth of the city. Consumer locational equilibrium is the ability for the consumer to embed owns preference over distance distribution cost when choosing to consume a product. Compensation differential is a state offered wage to offset the balance between a preferred and un-preferred job. Terminal cost is the cost incurred when disposing the asset (Florida & Mellander, 2014). Externality damage is unwanted cost to the least expected party. Scale economy is the advantages that in terms of cost cutting that establishment stand to gain due to magnitude of