4. d. How does transportation scheme affect the way diversity is perceived in a city (according to the discussion, comparing Houston and NYC)? e. How does economic inequality among segregated neighborhoods affect the future of low income neighborhoods? [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]. 80 60 40 20 0 0 1 2 3 4- 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Curryville 32 44 56 68 80 92 O4 116 128 140 128 116 104- 92 80 68 56 44 32 Lebroville 50 70 90 10 130 150 170 150 130 11 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? c. Now assume that the mayor of Curryville wants to increase the city population by changing its current minimum lot size (MLS) rule, but still preserving the uniform distribution of identical housing units throughout the city. In what direction (decrease or increase) should the major change the MLS rule? Why? d. Following part (c) above, now suppose that the major wants to attract exactly 2 million new residents, from Lebroville. Calculate exactly what the new MLS rule should be, such that Curryville can house exactly 2 million additional residents? e. In which direction will the residential housing prices move after the change in the MLS rule in part (d)? How would the urban utility curve respond (shift up or down) in response? How will the residents respond? f. Now assume that following part d) and e), the major actually puts the new MLS rule to practice, and achieves to increase the city population to be exactly 8.5 million in Curryville. What would the equilibrium utility and population levels be in each city after this MLS rule change in Curryville? -Iint