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In Figure 3, it is clear that as the discount level is increased, implying a passthrough of over 100%, the general welfare level increases, but at a declining rate. The curves of both models appear to reach a maximum at a discount of about 8¢.

It is clear that as the discount level is increased, implying a passthrough of over 100%, the general welfare level increases reaching a maximum at a discount of about 8¢.