Narrbegin Exhibit 10.4 The market for permits
-Looking at Exhibit 10.4, suppose that there is a slowdown in the economy. That might lead to:

Question

Narrbegin Exhibit 10.4 The market for permits  
-Looking at Exhibit 10.4, suppose that there is a slowdown in the economy. That might lead to:

Quizplus · Accepted Answer

A slowdown in the economy is likely to reduce overall production levels and lower consumer demand, resulting in a decrease in demand for carbon-intensive outputs. As a result, the demand for emissions is likely to decline, leading to a decrease in demand for permits.