Question: Question 2. (20 marks) Consider a model of a negative consumption externality. Households have strictly convex preferences over composite (x4, xBrespectively) and a level of

Question 2. (20 marks) Consider a model of a negative consumption

externality. Households have strictly convex preferences over composite (x4, xBrespectively) and a

Question 2. (20 marks) Consider a model of a negative consumption externality. Households have strictly convex preferences over composite (x4, xBrespectively) and a level of activity chosen by household A measured by 0 st

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