Draw a pair of utility curves

Assignment Help Business Economics

Reference no: EM13150485

Innovation and Growth: Suppose a region’s workforce of 14 million is initially split equally between two cities, X and Y. The urban utility curve peaks at 4 million workers, and beyond that point the slope is constantly -$3 per million workers. The initial equilibrium utility is $60. Suppose city X experiences technological innovation that shifts its utility curve upward by $12. (a) Draw a pair of utility curves, one for X and one for Y, and label the positions immediately after the innovation (before any migration) as x for city X and y for city Y. Use arrows along the curves to indicate that migration that follows. Show the long-run equilibrium using x’ and y’ respectively. (b) For the new equilibrium (after migration) calculate the utility and the population in each city. Thanks.

Reference no: EM13150485

Questions Cloud

How would these cities change their size : how would these cities change their size? Assuming that the total population of 13 million cannot be changed, would there be a smaller and a larger city?

Find probability that group of nine graduates have average : Find the probability that a) an individual graduate will have a salary over $45000 and b) A group of nine graduates will have a group average over $45000.

What is menopause : Describe one familial genetic disease that is carried by a dominant gene and one that is carried by a recessive gene.

Deduction for state income taxes on federal return : On April 12, 2009, he files his state return for 2008 claiming a refund of $900. Ernest receives the refund on August 3, 2009. If Ernest itemizes deductions, how much may he claim as a deduction for state income taxes on his Federal return for cal..

Draw a pair of utility curves : Draw a pair of utility curves, one for X and one for Y, and label the positions immediately after the innovation (before any migration) as x for city X and y for city Y. Use arrows along the curves to indicate that migration that follows.

Define a zero-order reaction has a constant rate : what will the concentration be after 9.00 minutes? Part B A zero-order reaction has a constant rate of 1.30×10^?4 M/s. If after 60.0 seconds the concentration has dropped to 8.00×10^?2 M, what was the initial concentration?

Describe the likely impact on the bond market : The government proposes cutting taxes on investment by implementing a credit for investment in information technology equipment. The proposal would reduce government tax revenues. Describe the likely impact on the bond market .

Evaluate the economic growth and development economists : Evaluate the economic growth and development economists. Determine which economist you feel made the most significant contribution to economic theory.

Present value of machine investment : The machine is expected to reduce labor costs by $70,000 per year and material scrap by $20,000 per year. The machine is expected to have a 5-year life. What is the present value of this investment, assuming a 12% interest rate?

User Account

All Pages