Solution to In the News By spending $1,350 extra on a new car, you forgo $1,350 of other goods. With a new car, your emissions fall from 130 grams to 95 grams, a reduction of 35 grams. The opportunity cost of a 1-gram reduction in emissions is $1,350 of other goods divided by 35 grams, or $38.57 of other goods.

Figure 1