Use the Following Information to Answer the Subsequent Questions

question 9

Multiple Choice

Use the following information to answer the subsequent questions. A simple monocentric city Roundville) has a population of 3,000,000 with a homogeneous density of 5 inhabitants per acre, and one person per household. Agricultural rents are $500/acre/yr, housing construction costs including developer profit) can be paid for with a perpetual loan charging interest of $5000/house/yr, and transportation costs are $250/person/yr per mile of distance from the center of the city. Recall that there are 640 acres per Mi².)
-What is the total annual property rent per acre of land in the center of Roundville?

• A) $47,100.
• B) $25,500.
• C) $5,500.
• D) $500.

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Definitions:

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures.

Consumers

Individuals or households that use goods and services generated within the economy.

Sellers

Individuals or entities that offer products, goods, or services for sale to buyers.

Tax Increase

The act of raising the amount of money government collects from taxes, often to fund public services or reduce budget deficits.