The Diagram Below Shows the Market for Tradable Pollution Permits

The diagram below shows the market for tradable pollution permits. Figure 17- 7
-Refer to Figure 17- 7, which depicts the market for tradable pollution permits. If the environmental organization called "Friends of the Earth" buys a large quantity of pollution permits and permanently decides not to use them, then

A) the supply curve shifts to the right, and the equilibrium price falls.
B) the demand curve shifts to the left, and the equilibrium price falls.
C) allocative efficiency is lost.
D) there is no impact on the equilibrium.
E) the supply curve shifts to the left, and the equilibrium price rises.