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accident rate allied market allocation amount average benefit-cost analysis benefit-cost ratio benefits and costs capital Chapter Clarke taxes compensation compute consumer surplus consumption dead weight loss deductibility demand function discount rate distribution emissions equal equation equilibrium estimate evaluation federal firm gains and losses gains or losses grants groups Hence higher household human investment program impact income effect indifference curve Kaldor-Hicks efficiency leaky bucket less lose marginal cost marginal utility measure median voter minimum wage natural monopoly optimal outcome output percent pollution present value price falls problem producer surplus public investment quantity raising low incomes ratio real interest rate rise risk saving secondary market shaded shown in Figure side payments slope social optimum social rate society stream subsidy supply function Suppose tax rates taxpayers Tellico Dam trapezoid triangle uncertainty units valuation voting workers zero