Explain why the value of pollution permits in one area of the country rose 20 percent per year, while in another remained unchanged from year to year? What would you expect to occur as a result of this differential? Smokers impose negative externalities on nonsmokers. Suppose the air in a restaurant is a resource owned by the restaurant owner. a. How would the owner respond to the negative externalities of smokers? b. Suppose the smokers owned the air. How would that change matters? c. How about if the nonsmokers owned the air? d. Finally, consider what would occur if the government passed a law banning all smoking. How would the outcome compare with the outcomes described above?