3. Let X' be a new house overlooking a canyon. Let P be the reduction in scenic beauty experienced by the community. Finally, let X_, be the status impact on folks who are not b arising from the new McMansion. Assume that the positive increment to individual utility for individual b of an increase in X', equals $10,000 in consumer surplus; and that the negative status increment to other people is -$500. Assume also that a one unit increase in X& produces one unit of "P", which further causes a -$1000 unit impact on utility for everyone exposed. In a world of 5 people (including Mr. b), what are the private benefits to Mr. b of consuming one more unit of X"? What are the external costs of a one unit increase in X ? What will be the net increase in SW of a one unit increase in Xq? 4. What parts the development decision in part #3 would a conventional benefit-cost analysis capture? What would it miss