The diagram below shows a market for tradable pollution permits.
Figure 17- 7
-Refer to Figure 17- 7,which depicts the market for tradable pollution permits.The amount of permits Q* is determined by

Question

The diagram below shows a market for tradable pollution permits.
  Figure 17- 7
-Refer to Figure 17- 7,which depicts the market for tradable pollution permits.The amount of permits Q* is determined by

Quizplus · Accepted Answer

The amount of tradable pollution permits (Q*) is typically determined by the relevant government, which sets the cap on total emissions allowed, thereby controlling the number of permits issued.

The Diagram Below Shows a Market for Tradable Pollution Permits