The impact of some externalities is very local, such as noise from airplanes landing and

taking off at an airport. Such externalities depress the value of the immediately

surrounding real estate. We say that the cost of the externality is capitalized in the value

of the property. Assume that poor individuals are more willing to accept the high level

of noise pollution, in return for the much lower rents they have to pay for housing.

Describe the incidence of a regulation lowering the noise level surrounding the airport;

that is, who benefits?