Consider a homeowner's demand for cleaner air in a city in which the air is rather dirty. In particular, the figure to the right shows the demand for reductions in air pollution measured in nitrogen oxides (NOX) of 10 parts per 100 million (pphm). Demand for cleaner air is derived at least in part from the increased value of a home associated with cleaner air. Suppose the price of each pphm-reduction in air pollution is $800. Part 2 The value to a homeowner (above and beyond the payment) of a 6-pphm reduction in air pollution is equal to the consumer surplus actual expenditure associated with reducing air pollution by that amount