Question 3: (10 pts): Segregation vs. Integration Consider a city of 200 people (100 rich and 100 poor) and two neighborhoods (100 people in each). Both groups generally prefer to live with rich people and are willing to pay a premium for living with a fraction of rich people that is larger than 50%. Poor people's premium curve is given as P, = x2, where x is the percentage of rich above 50% (e.g., if there are 52% rich, x will be 2). Rich people's premium curve is given by Ppicn = 20x 0.1x%. What is the equilibrium outcome? Is there more than one equilibrium? Explain