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around a monocentric city as you move closer to the city center land values should increase due to the close proximity to the market and therefore lower transportation costs. This means that in the center of the city theoretically there should be high wealth businesses in the center going to low wealth, then high wealth industry going to low wealth, then high wealth residential going to low wealth and so on, stemming all from the distance to the center of the city. That goes to say that the zoning is the center of the city the more desirable it is and therefore those places go for the highest prices.

One important difference should be mentioned however, in the monocentric city there is supposed to be nothing impeding travel which includes no roads, however in this simulator it is impossible not to include roads and therefore roads were included. Do roads change the simulator to not coincide with the ideals of a monocentric city? I doubt it.

I found that cities that I created in SimCity are more successful if residential, commercial, and industrial zones are segregated. That goes to say that when I separated residential, commercial, and industrial zones they had a faster growth rate and a more filled out city was created. The degree to which this worked was fairly constant however of course there was some intermingling of two or more types which seemed to only affect land values of residential zones.

Currently I reside in white rock, while a relatively small city, the ideals of agglomeration economies applies. For instance, in white rock the main tourist attraction is the beach. Here because of expensive prices mostly only businesses reside on the strip and residential zones are found on the outer ring on the city borders. This is also seen in the simulation, it appears that if you locate both industry and commercial close together, or with the ability to easily travel between the two (with a port or a railway) the city is better off as a whole.

For an overall basic equation in SimCity, R = C + I does work. However In terms of SimCity there are a lot of different variables that also apply when talking about residential demand. For instance, the density and quality also needs to be calculated into the equation as well as external factors such as health care, the cleanliness of the city, taxes, and education potential.

An example of this is best shown by setting the taxes of residential to 0 and maximizing the taxes of commercial and industrial zones to 20%. There will be a massive influx of people wishing to move to your city however you will lose a large core of your commercial and industrial zones. Because of these factors that can drastically change your demand function while lowering the demand for commercial and industrial it shows that due to externalities and government influence that the equation doesn't always work. With that said though all things equal R = C + I does roughly describe the games demand.

Assuming that after the tutorial and after adding more density to the city the city still remains overcrowded. At the end of chapter 4 the text explains how developers can improve utility in an overcrowded city. Essentially what it says is that a developer could create a desired city and charge effectively more to live there, those that could afford it would because it is desirable and those that couldn't afford it would have to find another