Part II. Hedonics and sorting: In class we introduced a case where people have heterogeneous pref- erences in our sorting exercise. The types of households, their value of environmental quality, and the number of each type are repeated here for reference. We will ignore school quality in this problem. Neighborhood A will have a price of 0 regardless of the number of people living there, whereas the price equals the number of households in all other neighborhoods. The utility of a person living in a neighborhood is U = QEQ -P. This is the same setup as in class, but I have changed the labels so they are no longer colors, in response to a student suggestion. Type Number Griffindor 6 5 Slytherin 15 Hufflepuff 10 Ravenclaw 5 Beauxbaton 25 - I Durmstrang 15 2. Complete the table below by listing the equilibrium prices in each neighborhood given the setup. Note that this is the same problem included in lecture. You may need some hints to figure this out, so we have given you the price in neighborhood F. Remember that households will be sorted so that, in equilibrium, those with the highest a will end up in the neighborhoods with the most EQ. (4 points) EQ P 0 A 0 P 1 C 2 D 3 16 5