The diagram below shows a market for tradable pollution permits. 
FIGURE 17-8
-Refer to Figure 17-8,which depicts the market for tradable pollution permits.If there is an increase in firms' marginal cost of pollution abatement,
A) firms decide to abate more pollution.
B) the price of pollution permits will fall.
C) firms will demand more pollution permits.
D) firms will demand fewer pollution permits.
E) firms require exactly Q* permits.
Correct Answer:
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