2. Stability with one city too small, and one city too large. Consider a region with one city that is too small and one city that is too big. Let Toronto be the city that is too large, and Montreal the city that is too small. Assume they are both have the same relationship between city size and utility per person (i.e., they are on the same curve).

(a) Draw a version of Figure 1 using the dotted line that shows the two cities sizes in equilibrium. Note that there is not a single correct way to draw this figure, but there are also plenty of wrong ways to draw the figure.

(c) Draw a version of Figure 1 using the solid line that shows the two cities sizes in equilibrium. Again, there are many correct ways to do this, and many wrong ways.

Transcribed Image Text:

Utils per person City population Figure 1: Two possible relationships between city size and utility Utils per person City population Figure 1: Two possible relationships between city size and utility

Answer rating: 100% (QA)

Certainly Lets explore the equilibrium sizes of the cities Toronto and Montreal in a region where on... View the full answer