King Fahd University of Petroleum & Minerals
College of Environmental Design
Department of City & Regional Planning
CP 205 Urban Economics
Prof. Habib Alshuwaikhat
Assignment # 1
Due Date: March 10, 2010
Student Name:
ID#:
1. List THREE of the basic questions economists are interested in. Explain how these
are related to urban areas.
a. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------b. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------c. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------2. Draw the demand and supply curves. Show how the changes in income affect the
position and shape and demand curve and how changes in technology affects the
position and shape of supply curve.
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3. Show (graphically) the relationship between the average fixed cost, average variable
cost, average total cost and the marginal cost.
------------------------------------------------------------------------------------------------------------------------- -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------4. What is the Price Elasticity of:
a. the price elasticity of demand?
------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------b. the income elasticity of demand?
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