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Question Description
We have found that over time, land in urban areas has increased dramatically in value. Some of the land values in urban areas are just staggering (https://www.citylab.com/equity/2017/11/the-staggering-value-of-urban-land/544706/ (Links to an external site.)).
One of the more interesting results of this “demand determined” land valuation is the price to place a hot dog cart in New York City (seriously). A few years ago, the New York Times ran an article about hot dogs stand locations in Central Park selling for hundreds of thousands of dollars. https://www.nytimes.com/2013/09/05/nyregion/the-six-figure-price-tag-for-selling-a-two-dollar-hot-dog.html (Links to an external site.)
This week, I would like you to prepare a 1-page analysis of these huge urban land costs helping me understand why they would be so valuable. Please make sure you reference the readings in Chapter 10 and both articles.
How does the location lead to value for buyers or firms? Is it worth it? How do you know? It might help you to think about the urban land in contrast to rural or agricultural land.
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