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Page of14 30330 Midterm I Page 9 of 14 5/03/2021 5. (15 pointa) Sorting. Suppose we have 2 ueighborhoods,A and B, each with 100 lots.

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Page of14 30330 Midterm I Page 9 of 14 5/03/2021 5. (15 pointa) Sorting. Suppose we have 2 ueighborhoods,A and B, each with 100 lots. Addi- tionally, there are two types of households (I'EHEI), those that loved Star Wars: The Last Jedi (we will call them L for short) and those that hated Star Wars: The Last Jedi (we will call them H for short). The rent premin for living in neighborhood A is depicted by: 2.0 Rent Premium for thd A 8 G P m 0.0 o 75 1o Number of type L in A (a) (5 points) On the graph, label each equilibrium point. Furthermore, label each equilibrium as either full integration, fuil segregation, or mixed. (b) (5 points] If you labeled full segregation 33 an equilibrium, explain why it. is an equilib- rium. If you did not label full Segregation as an equilibrium, explain why it he not an equilibrium. 0 ZOOM +

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