Migration to Portland In the last several months, the number of cars driving in Portland with Washington State license plates has increased dramatically. Suppose this refl ects migration from Seattle to Portland. Use two utility curves, one for Portland and a second for Seattle, to represent this migration. Assume that both cities are on the negatively sloped portions of their utility curves. a. Label the current position for Portland (population 2 million) with “P” and the current position for Seattle (population 3 million) with “S.” Use arrows to indicate the direction of movement along each utility curve. b. In Portland, migration [decreases, increases] utility because _____ of scale from _____ dominate _____ of scale from __________ . c. Label the long-run equilibrium point for Portland as “Q” and the long-run equilibrium point for Seattle as “T.”

QUESTION:

Migration to Portland

In the last several months, the number of cars driving in Portland with Washington State license plates has increased dramatically. Suppose this reflects migration from Seattle to Portland. Use two utility curves, one for Portland and a second for Seattle, to represent this migration. Assume that both cities are on the negatively sloped portions of their utility curves.

a. Label the current position for Portland (population 2 million) with “P” and the current position for Seattle (population 3 million) with “S.” Use arrows to indicate the direction of movement along each utility curve.

b. In Portland, migration [decreases, increases] utility because _____ of scale from _____ dominate _____ of scale from __________ .

c. Label the long-run equilibrium point for Portland as “Q” and the long-run equilibrium point for Seattle as “T.”