Variables Good A Good B Good C
Price (P) 6 8 3
Quantity (Q) 100 100 300
Total wage (W) 250 390 150
Interest cost (I) 50 50 550
Transportation (t) 0.20 0.40 0.15
Question1:
A. What will be produced where if only good A and B are produced?
B. What would be the impact of the transportation cost of good A increasing to 0.40?
Question2:
A. Redo the land allocation assuming that all 3 goods are competing for land?
B. If the transportation cost of good C decreases to 0.05, what is the resulting spatial
Distribution of land use

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