c. An older Puerto Rican family has moved to the suburbs, but still owns a house in Humboldt Park, which now has two apartments. Seeing that rents in the area are going up, they raise the rent from $800 to $1000 a month. i. In one of the units, the existing resident, Ignacio, decides to stay and pay the extra $200 . Is the higher rent that Ignacio pays a negative externality? ii. In the other unit, the existing resident, Carlos, decides that rent is too high and moves to another neighborhood while rents are the same. A new resident, Joanna, pays $1 , 000 for ignacio's old apartment. Is Joanna exerting a negative externality on Carlos?.

1. c. An older Puerto Rican family has moved to the suburbs, but still owns a house in Humboldt
Park, which now has two apartments. Seeing that rents in the area are going up, they raise the
rent from $800 to $1000 a month. i. In one of the units, the existing resident, Ignacio, decides to
stay and pay the extra $200 . Is the higher rent that Ignacio pays a negative externality? ii. In the
other unit, the existing resident, Carlos, decides that rent is too high and moves to another
neighborhood while rents are the same. A new resident, Joanna, pays $1 , 000 for ignacio's old
apartment. Is Joanna exerting a negative externality on Carlos?