MCo (based on Eo) $ MC1 (based on E:) D = MB Хо X1 Personal environmental quality (X) Refer to the figure above. Suppose that a policy change would improve overall environmental quality from Eo to E1, which would reduce the marginal cost necessary to achieve personal environmental quality X. In the figure above, what area represents a measure of incremental benefits from the policy change based or the total willingness to pay for the policy change? Oa +c d O a +b + c+ d b Ob+ d a + b %24

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