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Business, 15.10.2019 00:00 emily12403
People derive utility in their lives from consuming goods (all other goods), g, and clean air (measured as the number of particulates removed per m3), a, as measured with the utility function u(g, a) = g0.6a0.4. the price index of consumer goods equals $20 per day. income equals $1000. what is likely to happen to the air quality as the price of clean air (abatement cost) increases from $10 to $20?
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People derive utility in their lives from consuming goods (all other goods), g, and clean air (measu...
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