In this problem, you will solve for the equilibrium of an idealized city experiencing rural-urban migration. As learned in class, the condition for migration equilibrium requires that the urban residents living at the edge of the city (whose commute distance is xbar) has the same disposable income as the income of a rural resident. Assume that the rural income (rA) is 50, and that commuting cos per mile for urban residents (t) is 2.

Given the information that the city’s distance from CBD to its edge (xbar) is 10 at the migration equilibrium, infer the income of an urban resident (y).

a.100

b.90

c.70

d.50

e.30