Consider two towns with 4 million individuals each. The figure below shows the initial locational equilibrium for these two towns where the utility per worker is $80 as shown by point I. Use this figure to answer parts a and b.       a. If one town creates a growth boundary which restricts the population to 3 million people, graphically show the adjustment process to a new equilibrium and describe how you reached this new level. (Hint: you should talk about 3 new points and draw a new curve) b. What is the final utility level in each of the two cities following the growth boundary implementation? Are residents better or worse off than before the growth boundary?

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