question archive Consider a regional economy with 12 million workers and an urban utility curve ????(????) = 15 + 12???? − 2????^2, where n is the number of workers in millions
Consider a regional economy with 12 million workers and an urban utility curve ????(????) = 15 + 12???? − 2????^2, where n is the number of workers in millions
Subject:EconomicsPrice: Bought3
Consider a regional economy with 12 million workers and an urban utility curve ????(????) = 15 + 12???? − 2????^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. Suppose city A introduce carplanes to replace regular cars for commuting, and its urban utility function is ????(????) = 15 + 12???? −????^2. Graphically illustrate and discuss the effect of the carplane on (i) equilibrium distribution of population between the cities and (ii) regional utility.
