question4solution - The placement of the CICs below...

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4. The graph indicates that the public values environmental quality more than consumption. This is evident by the fact that although there is only a slight deterioration in environmental quality there is a large increase in consumption, yet the public still considers themselves’ worse off in 2000 compared to 1900. 2000 CIC 2 1900 CIC 1
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Unformatted text preview: The placement of the CICs below indicates that the public is better off in 2000 than in 1900 because CIC 2 lies above and to the right of CIC 1 . This indicates that the public perceives themselves t o be better off in 2000 compared to 1900 as they derive a higher utility in 2000 compared to 1900. 2000 CIC 2 1900 CIC 1...
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This note was uploaded on 08/16/2008 for the course ECON 2100 taught by Professor Ferguson,craig during the Spring '08 term at University of Guelph.

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question4solution - The placement of the CICs below...

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