You are asked to assume that you were just offered a job near the center of a city and you must decide where to live? If you live close to the city center, your round-trip commute will be 15 minutes. If you live in the distant suburbs, your round-trip commute will be 60 minutes. How does location affect the cost of housing? If there are lots of workers like you, where will the apartments be relatively more expensive? How will you choose where to live? How should you make the necessary tradeoffs?