Consider a regional economy with 12 million workers and an urban utility curve u(n) = 15 + 12n – 2n^2, where n is the number of workers in millions. Initially the region has four cities (A, B, C, D), each with a population of 3 million. a. The equilibrium utility level is [___-_] utils. b. Suppose city A introduce carplanes to replace regular cars for commuting, and its urban utility function is u(n) = 15 + 12n –n^2. Graphically illustrate and discuss the effect of the carplane on (i) equilibrium distribution of population between the cities and (ii) regional utility. Please show the graphs as well!!
Consider a regional economy with 12 million workers and an urban utility curve u(n) = 15 + 12n – 2n^2, where n is the number of workers in millions. Initially the region has four cities (A, B, C, D), each with a population of 3 million. a. The equilibrium utility level is [___-_] utils. b. Suppose city A introduce carplanes to replace regular cars for commuting, and its urban utility function is u(n) = 15 + 12n –n^2. Graphically illustrate and discuss the effect of the carplane on (i) equilibrium distribution of population between the cities and (ii) regional utility. Please show the graphs as well!!
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Consider a regional economy with 12 million
workers and an urban utility curve u(n) = 15 +
12n – 2n^2, where n is the number of workers in
millions. Initially the region has four cities (A, B,
C, D), each with a population of 3 million.
a. The equilibrium utility level is [___-_] utils.
b. Suppose city A introduce carplanes to replace
regular cars for commuting, and its urban utility
function is u(n) = 15 + 12n -n^2. Graphically
illustrate and discuss the effect of the carplane
on (i) equilibrium distribution of population
between the cities and (ii) regional utility.
Please show the graphs as well!!](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01a51b7e-bd0b-4302-9fad-e98c5bc4db03%2F6e80940d-fc33-4739-9a8c-831fe82c8944%2Fzamxzke_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider a regional economy with 12 million
workers and an urban utility curve u(n) = 15 +
12n – 2n^2, where n is the number of workers in
millions. Initially the region has four cities (A, B,
C, D), each with a population of 3 million.
a. The equilibrium utility level is [___-_] utils.
b. Suppose city A introduce carplanes to replace
regular cars for commuting, and its urban utility
function is u(n) = 15 + 12n -n^2. Graphically
illustrate and discuss the effect of the carplane
on (i) equilibrium distribution of population
between the cities and (ii) regional utility.
Please show the graphs as well!!
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