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Preview File Edit View Go Tools Window Help PO M $ 7 15% A Mon 10:12 Q . . . . . . hw_two.pdf (page 5 of 8) ~ VitalSoul Q. Search ero Search Textbook Solutions.. + 7. (5 points) Neighborhood Sorting. Suppose we have 2 neighborhoods, A and B, each with 200 lots. Additionally, there are two types of households (HHs), those that like the band Nickleback (we will call them LN) and those that hate Nickleback (HN). The rent premia for living in neighborhood A is depicted by: RPONY 330: ECON Rent Premium for Nehd A PILN Number of LN HH's in A (a) (2 points) On the graph, label each equilibrium point. Furthermore, label each equilibrium as either full integration, full segregation, or mixed. (b) (2 points) If you labeled full segregation as an equilibrium, explain why it is an equilib rium. If you did not label full segregation as an equilibrium, explain why it is not an equilibrium. al question (c) (2 points) Of the equilibrium you labeled, which are stable and which are unstable? Ex- plain. research and brainstorming process (see appendix A and B). I will go in depth explanation in X P EW