1. 130 points) Consider a region with a population of 16 million, where everyone lives in a single city. Atlantic (Px=16). The urban utility curve for Atlantic reaches its maximum with 7 million population and includes the following combinations: Urban Utility Curve Population 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Utility 17 | 30 41 53 62 67 72 67 | 62 57 52 47 42 37 | 32 27 Suppose the regional government decides to establish a new city, Pacific based on the structure of Atlantic, i.e. Atlantic and Pacific has the same urban utility curve. Assume the regional government initiated an involuntary (forced) migration of 2 million from Atlantic to Pacific (PA=14, P,-2). a. What would the utilities and population in each city be right after the foreed migration? Sketch and depict on a utility curve, b. Who are the winners and losers of such a move from Atlantic to Pacific? c. Is this allocation (P-14, P.2) an equilibrium? Explain why or why not. If an equilibrium, determine whether stable or unstable, d. If people are free to move between the cities (after the initial migration) and moving is not costly, what would one expect to happen? e. What if the moving costs were equal to 10 units of utility loss? Would this be an equilibrium? If so, what type? f. What is the minimum number of people the regional government should forcefully move such that we can observe/reach non-zero population levels in both cities in equilibrium? [Give a range, you can't calculate without knowing exact slope) g. What are the stable equilibria (find all) of population distributions (only in integers, since I have not given you the slopes) between two cities in this region