Consider a region that has a single factory city, a city that developed a result of scale economics of production. It is a walking region: People walk to work and purchase consumer goods. Suppose pump sneakers are introduced decreasing walking time per round-trip mile from 1/12 to 1/21 hours.
a. Will pump sneakers cause the factory city to grow? Explain
b. Depict graphically the effects of th new sneakers on the market area of the single factory.