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Suppose that if all cars have catalytic converters on them, air quality in a city will increase by 20%. A

person's WTP for this improvement in air quality is $300 a year. To have a catalytic converter on their car, a person has to pay $225 a year. What does requiring people to have catalytic converters on their cars do to this person's welfare?

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Requiring people to have catalytic converter on cars improves a person's... View the full answer

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