: In the initial equilibrium, a nation's workforce of 24 million is divided equally between a city and a rural area. The initial common utility level is $50. The urban utility curve has the conventional hump shape, with a peak at 8 million workers. In the workforce range 8-12 million, the slope of the utility curve is -$3 per million workers. The rural utility curve is subject to mild increasing returns to scale. In the workforce range 12-16 million, the slope is $2 per million workers. Suppose the nation invests in rural infrastructure, increasing rural productivity and shifting the rural utility curve upward by $2. a) Workers will migrate from _____ to _____ because .................. b) Migration [increases, decreases] utility in the rural area and [increases, de- creases] utility in the city, with a [larger, smaller] change in the [city, rural area]. c). Show the new equilibrium distribution of the workforce between the rural area and the city. In the new equilibrium, the workforce of the city is _____; the workforce of the rural