Figure 10-11
-Refer to Figure 10-11.This graph shows the market for pollution when permits are issued to firms and traded in the marketplace.The equilibrium price of pollution is
A) $50
B) $500
C) $1,000
D) $2,000

Question

Figure 10-11 
-Refer to Figure 10-11.This graph shows the market for pollution when permits are issued to firms and traded in the marketplace.The equilibrium price of pollution is
A) $50 
B) $500 
C) $1,000 
D) $2,000

Quizplus · Accepted Answer

The equilibrium price of pollution is the point where the demand and supply curves intersect. In this case, the equilibrium price is at $1,000, where the quantity of pollution demanded by firms (50) is equal to the quantity of pollution supplied by other firms (50).

Figure 10-11 -Refer to Figure 10-11.This Graph Shows the Market for Pollution