Figure 4.5
Individual Demand for Lowering Indoor Air Pollution (CO2) in $/yr

-Refer to Figure 4.5.If the market is reduced to Homeowners A and C, aggregate willingness to pay for all CO2 levels _________.

Question

Figure 4.5
Individual Demand for Lowering Indoor Air Pollution (CO2) in $/yr
 
-Refer to Figure 4.5.If the market is reduced to Homeowners A and C, aggregate willingness to pay for all CO2 levels _________.

Quizplus · Accepted Answer

The aggregate willingness to pay would decline because removing any participant from the market (in this case, Homeowner B) would reduce the total amount that consumers are willing to pay for CO2 levels.

Figure 4.5 Individual Demand for Lowering Indoor Air Pollution (CO2) in $/Yr