32145w3

[30 pts] Consider a region with two cities, Lebroville and Curryville. Both cities have natural growth boundaries that can NOT be extended. Lebroville covers an area of 15,000 hectares, and Curryville covers an area of 20,000 hectares. Both cities are occupied with identically sized residential units only, distributed uniformly throughout each city . Each resident lives alone in a separate house, in other words, one residential unit per person. Cities of Lebroville and Curryville are neighbors, and residents in each city are free to move in between. All residents are renters. Currently, Curryville has a strict MLS rule, but there is no MLS rule in place in Lebroville. [ Slopes of the Curryville and Lebroville utility curves are (+/-) 12/million and (+/-) 20/million, and has a peak at utility levels of 140 and 170, respectively]. 180 Curryville 160 140 Lebroville 120 100 Utility 60 40 20 0 0 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Curryville 32 44 56 68 80 92 104 116 128 140 128 116 104 92 80 68 56 44 32 20 8 Lebroville 50 70 90 110 130 150 170 150 130 110|90 70 50 30 10 Population in millions a. Assume Curryville has population at 6.5 million, and the Lebroville has population at 9 million. Is this an equilibrium? If so, what type? If not, find what the equilibrium population levels be if everyone is free to move. b . Given the population levels and area measures as listed above, calculate what the MLS rule should be in Curryville? How about the population per hectare (i.e. density) in Curryville? How are the MLS and density are related to each other, and why