Question: Two cities A&B are deciding upon joint pollution laws. Right now they both face identical prices for their housing. If they decide that city A

Two cities A&B are deciding upon joint pollution laws. Right now they both face identical prices for their housing. If they decide that city A is to be a pollution free city Clean town and all the factories would locate in city B Smogville, in the long run, we expect to see

a.

Asthmatics moving to Cleantown

b.

Poorer families moving to Smogville

c.

Residents in both the cities relocating based on their tolerance for pollution

d.

1 points

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