Figure 10-7
-Refer to Figure 10-7. This graph shows the market for pollution when permits are issued to firms and traded in the marketplace. In the absence of a pollution permit system, the quantity of pollution would be
A)25 units.
B)50 units.
C)75 units.
D)100 units.

Question

Figure 10-7 
-Refer to Figure 10-7. This graph shows the market for pollution when permits are issued to firms and traded in the marketplace. In the absence of a pollution permit system, the quantity of pollution would be
A)25 units. 
B)50 units. 
C)75 units. 
D)100 units.

Quizplus · Accepted Answer

In the absence of a pollution permit system, firms would pollute up to the level where there are no restrictions, which is typically the maximum level shown on the graph, 100 units in this case.

Figure 10-7 -Refer to Figure 10-7. This Graph Shows the Market for the Market