1. Spatial Indifference There are two cities, Springfield and Eugene, and 100 identical workers who can choose to live in either city. Suppose the indirect utility of living in either city is given by: V=W,-R; +M Where W; is the wage of living in either city j and R; is the rent in city j and M are amenities in city j. Wages in Eugene are $100 and wages in Springfield are $200. Amenities in Springfield are 0 and amenities in Eugene equal 50. Rents in Eugene, Rg are given by: RE=15+Le, where Leis the number of workers in Eugene, and rents in Springfield, Rs are given by: Rs=30+.5Ls, where Is is the number of workers in Springfield. a. If half the workers live in Springfield, and half the workers live in Eugene, what is the indirect utility of living in each city? What is the total tax revenue given the lump sum tax? f. Suppose we impose an income tax of 15%, such that workers only receive .85 W; and the government receives .15W.. How many workers live in each city now? g. What is total tax revenue with the income tax? h. Which tax scheme do you think is more effective? Why