Consider a region with a workforce of 12 million in a single city. The urban utility curve reaches its maximum with 3 million workers and includes the following combinations (W=workers in millions, U=Utility in $)

W	1	2	3	4	5	6	7	8	9	10	11	12
U	32	56	70	65	60	55	50	45	40	35	30	25

Suppose the government establishes a new city with 1 million workers leaving 11 million workers in the old city. Assume the number of cities remains at two.

1. ( 10 points) Immediately following the establishment of the new city, the utility in the small city is ____________ and the utility in the large city is ___________.

1. (20 points) Draw the utility curve. On the utility curve, mark the position of the new city and the old city. Label them and then use arrows to indicate the direction of movement for each city.

1. (20 points) In the long-run equilibrium, the workforce of the new city= __________ with utility= ____________ and the workforce in the old city =____________ with utility=______________.