Refer to Figure 10-8.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

Name: Refer to Figure 10-8.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
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Question

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