Problem: Melbourne and Sydney are the two main metropolitan areas in Australia. Each has 5 million inhabitants. Both cities have urban utility curve u(n) = 150 + 80n - l0n2, where n is the number of inhabitants in millions. Melbourne has a plan to expand its urban transport system to the suburbs, but Sydney cannot expand it because the city is surrounded by National Parks. Melbourne estimates that its population will increase to 8 million people in ten years and Sydney won't be able to go beyond 5 million due to its geographical limitations. Melbourne also believes that the larger share of the population will boost productivity and urban utility will move to u(n) = 200 + 60n - 5n2 after these 10 years, but utility in Sydney will remain the same. Discuss what would happen if migration between these two cities is possible. Will it have new equilibriums? Will they be stable?