C cisco is worried that the new timeline has created

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c. Cisco is worried that the new timeline has created an unstable equilibrium. Cisco promises to add you to Team Flash if you can help him understand the new urban dynamics that Flash have created. Draw a generic utility curve and
highlight the previous equilibrium created in part b). Indicate with arrows the flow of migration to the new long-run equilibrium in Central City and Star City. How many people reside in each city in the long-run? Are the citizens of the region better off or worse off compared to the previous timeline (when there was only one city in the region)? 7) [Previous Exam Question 20 Points] Suppose a region consist of one city, Central City. Central City has the following utility function. () = 5 + 60.5 21.5 And the following Marginal Income Function and the Marginal Cost Function: =60.5 2 = 6 0.5 2 a. Suppose the workforce in Central City is 3 million people. Draw a generic utility curve for a city. Identify the population & utility that maximizes the utility function as well as the population and utility associated with the current equilibrium.

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