The town of Chefsmeadow has 50 residents. Each resident has a car. Each car produces $40 worth of pollution per person. In other words, each person in the town breathes in $40 worth of air pollution harm from one person's car as that person drives around the town. Thus each car produces $2,000 worth of air pollution overall ($40 per person x 50 people = $2,000 total harm). Because there are 50 cars, the total dollar estimate of all the pollution harm caused by all the cars is $100,000. There is a device called a "Polluteaway" that can be installed in a car and cuts its air pollution in half. The device costs $500 to buy and install. For the following questions, you can assume each person cares only about the air pollution they breathe and not that others have to breathe. Remember, write the number of the question in front of your answer in the text submission box. 1. What is the dollar gain or loss to one individual (let's call him Fred) in buying and installing a Polluteaway in his car? Take into account both the gain in the cleaner air he breathes and what Fred has to pay. The answer will only be a number. Write a net gain as a positive number and a net loss as a negative number 2. Given your answer to question 1 above, if no one else in the town has bought one, would Fred buy one? Answer "Yes" or "No". 3. If everyone else in the town has bought one, would Fred buy one? Answer "Yes" or "No" No one in the town has one. There is a proposed deal that everyone in the town agrees to buy one if everyone else in the town also agrees to buy one. Everyone in the town has agreed to this deal so far except for Fred. 4. If Fred signs on and everyone buys one, what is the net gain or loss to Fred, including both the value of the cleaner air and the expense of buying the item. 5. So, should Fred sign the deal? Answer "Yes" or "No". 6. If Fred signed the deal, and no one could actually check if Fred had bought and installed the Polluteaway, should Fred keep the deal? Answer "Yes" or "No" 7. Explain why Fred should or should n