Question 1. Consider a model of a negative consumption externality. Households have strictly convex preferences over composite (x^,xrespectively) and a level of activity chosen by household A measured by Osts 100. The households' utility functions are U"(x^,t) = x1/2-1/2 and UP(x",t) = x1/2(100 - t)/2 Suppose the initial endowment of composite is e^ = 50 and e" = 50. Laws currently restrict Household A's activity, to the legal maximum is 0