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your answer. 2. Suppose an individual has a combination of y, a numeraire good (which can be considered to be money), and a bad, smoke

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your answer. 2. Suppose an individual has a combination of y, a numeraire good (which can be considered to be "money"), and a "bad", smoke pollution. In 3 separate diagrams for cases a), b) and c, graphically depict the following: a) Two indifference curves, labeled I, and 12, where I, indicates less utility than 12, and where each incremental unit of pollution to which the individual is exposed has an unchanging negative impact. b) Two indifference curves labeled I, and 12, where I, indicates less utility than I2 and where each incremental unit of pollution to which the individual is exposed has a decreasingly harmful effect because individuals build up their tolerance for the pollutant. c) Two indifference curves labeled I, and 12, where I, indicates less utility than I2 and where each incremental unit of pollution to which the individual is exposed has an increasingly harmful effect because individuals have an underlying respiratory illness and therefore suffer increasingly from exposure to each additional unit of the pollutant

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