If a policy analyst imputes marginal willingness to pay for environmental quality to be equal to: MWTP = 245 - 1.5EQ,where EQ represents a measure of environmental quality,what is the change in consumer surplus associated with an increase in EQ from 60 to 70 units?

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The Answer is To calculate the change in consumer surplus,we first calculate the level of consumer surplus for each level of environmental quality and then we compute the difference between them.When EQ = 60 units,MWTP = $155 and consumer surplus will be the area of a triangle with height 90 and width 60 which is equal to $2,700.When EQ = 70 units,MWTP = $140 and consumer surplus will be the area of a triangle with height 105 and width 70 which is equal to $3,675.The change in consumer surplus is therefore equal to 3,675 - 2,700 = $975.Consumer surplus increases by $975 when EQ increases from 60 to 70 units.

If a Policy Analyst Imputes Marginal Willingness to Pay for Environmental