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 number of permits is
A) 50
B) 100
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 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 100 permits.

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