Q2. One of the most important changes in US. cities over the past two domries is a dramatic reduction in violent crime. In this problem, we consider the impact of falling urban crime rates in a MenHobart]; framework. 1. Suppose that crime is a consumer rlisamenity. Show the impact of a reduction in crime in a standard RoscnRoback graph. How are equilibrium wages and rents a'octed in the city? IT points| 2. Now suppose that falling crime also allows rms to he more productive, for example, because they have to spend less money on security. Show how this changes the graph that you drew for part 1. 1What can we say about changes in wages and rental rates under this scenario? I? pointsl 3. Now suppose that there are two types of workers in the model, highskilled and low skilled workers. Suppose that the only effect of falling crime is on the consumer amenity eaqierieneed by lowskiliod workers, who are more likely to live in highcrime neighborhoods. Draw graphs describing how this affects equilibrium wages and rents for both high and lowskilled workers [i.e., draw two different graphs). [1'1 points]