Quostion 1 Immigration and Wage Equalization: Suppe. we have two eities: Miami end Atlanta, Individuals expect to live 10 yes., face. intent ode of 0% Per year. Workers in each city have a yearly labour supply given by h(w) = B workers always work 8 hours a year). Finns face competitive input and output medals mid the yearly production technology of firms in each city is f(k,I)= 24 and firms get $10 per mat produced. Suppose that both MM. and Atha. have 50 work.. end 16 firms. Suppose that there is an immigration wave (in period 1) raising the labour supply of Miami by 50 workers.
(b): After the inunigratMn wave in Miami, will wages in Atlanta M higher or lower than 11.75 if people face a moving cost of 13?



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