What is the difference between an open and closed model

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Question

What is the difference between an open and closed model? Draw the standard labor and land market equilibrium for a closed urban model include an opportunity cost of land in order to establish the edge of the city. Now consider a situation in which a sudden in migration of people increases the urban population. Show the partial and general equilibrium effects of this change on the housing and land market. Explain your pictures. Hint: Show the direct effect of in migration on each picture for partial equilibrium. For general equilibrium, consider how prices changes in each market (land or labor) and then ask how that price change affects the other market (labor/land).

Reference no: EM134033263

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