Question

Refer to Application 7.3 and the estimated changes in consumer and producer surplus reported by the NAPAP for various ozone policies.

Graphically model the result of a 25 percent increase in tropospheric ozone to qualitatively show the distribution of benefits reported by the NAPAP. (Do not attempt to arrive at the numerical values for the changes in surplus values. Show only how the consumer, producer, and total surpluses change in accordance with the reported findings.)

Answer 1