2. [20 points] Assume there are only two cities in a region, Manchester City (MC) vs. Leicester City (LC), identically populated. Moreover, further assume that there are only manufacturing jobs in MC, and only high-skilled idea- based industry jobs in LC. a. How would you expect the labor demand curves to differ (if any) between the two cities? Why? b. All else being equal, over-time, would you expect to see more volatility of unemployment rates in LC vs MC? (Assume identical labor supply curves). Explain your answer. c. If due to structural changes, 1 million people move from LC to MC, how would that affect the wages in each city? Compare the sign and the magnitude of the change in wages and equilibrium employment in both cities, and show your work on a graph (Assume identical Labor supply curve before migration)