Suppose a Competitive Market for Tradable Pollution Permits Is in Equilibrium

Suppose a competitive market for tradable pollution permits is in equilibrium at p*, with the quantity of permits being set by government policy at Q*. If technological advances reduce the marginal cost of pollution abatement, then

A) the equilibrium price of permits will rise above p*.
B) the equilibrium quantity of permits will fall below Q*.
C) there will be no change in p* or Q*.
D) the equilibrium price of permits will fall below p*.
E) the equilibrium quantity of permits will fall above Q*.