Discussion:
1. Americans' quest for materialistic lifestyle has led to an unsustainable and unconstrained housing market where builders will construct ever bigger and bigger homes." Evaluate this statement based on the economic theory of optimal housing.
2. Anti¬sprawl planners argue that cities such as Portland, Oregon are proof that American households prefer more dense lifestyles because their populations growth even as housing prices increase. Housing prices are higher because consumers value density, not because the land available for development in Portland is limited by an urban growth boundary that prevents farmland and other open space from being developed. Evaluate this argument from an economic perspective and what we "know" about housing characteristics and preferences.
3. Book sales are reaching record highs even as "bricks and mortar" bookstores such as Barnes and Noble are struggling financially? Explain this paradox in the context of market areas, technology, and the spatial relationship between supply and demand. Is the growth of amazon.com proof that the world is "flat"?