Seattle Pet months, the number of cars driving in Portiand with Washington State

Question

Seattle Pet months, the number of cars driving in Portiand with Washington State license plates has increased dramatically. Suppose this reflects migration from Seattle to Portland. The two utility curves shown above are for Portland and Seattle. Use the following terms to fillin the blanks: greater, less, economies, diseconomies, congestion, agglomeration, any of the points labeled in the graph, any of the numbers on the axes If the a movement from point a movement from point In Portland, migration of Seattle is initially 3 million residents, this migration would be shown on the utility curve as in Portland and toward point toward point ublity because in Seattle. of scale from The long run equilibrium in Portland will ocour at point and population is The long run equilbrium in Seattle will oocur at point where utility is and population is than it was before the migration. e here to 9/23/2018

Explanation / Answer

The gaps to be filled are as under:

point A to point C in Portland, point H to point F in Seattle

In Portland migration lesses utility beacuse economies of scale from congestion dominate diseconomies of scale from agglomeration.

LONG RUN EQUILIBRIUM AT pORTLAND WILL occur at point C where utility is less and population is greater than it was before migration.

LONG RUN EQUILIBRIUM AT Seattle WILL occur at point F where utility is MORE and population is LESSER than it was before migration.

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