Suppose housing (H) and air quality (A) are the only two things entering into Aaron's utility and the utility function is U(H, A) = A ∗ H. Suppose Aaron's income is $10 and the price of housing is $2. (a) Air quality is a non-excludable, public good so Aaron does not need to pay for it. How much housing will Aaron purchase? (b) If air quality is A = 2, which is the utility level? (c) Plot Aaron's indifference curve and budget constraint through this point, showing how much housing is consumed. (d) Suppose air quality rises to 4. What is the new utility level? (e) Plot Aaron's new indifference curve, budget constraint and consumption point. (f) What is the maximum amount of money Aaron would be willing to pay (WTP) to increase air quality from 2 to 4? (g) What is the minimum amount of money Aaron would be willing to accept (WTA) as compensation for a decrease in air quality from 4 to 2? (h) What is the economic intuition behind the relationship between WTP and WTA in your answers to part (1f) and (1g)?