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. The equilibrium number of permits is
A)50.
B)100.
C)1,000.
D)2,000.

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. The equilibrium number of permits is
A)50. 
B)100. 
C)1,000. 
D)2,000.

Quizplus · Accepted Answer

The equilibrium number of permits is where the supply and demand curves intersect. In this case, that is at 50 permits.

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