Figure 10-15
-Refer to Figure 10-15. The supply of pollution permits is
A) elastic and represented by line A.
B) inelastic and represented by line b.
C) elastic and represented by line F
D) inelastic and represented by line F.

Question

Figure 10-15 
-Refer to Figure 10-15. The supply of pollution permits is
A) elastic and represented by line A. 
B) inelastic and represented by line b. 
C) elastic and represented by line F 
D) inelastic and represented by line F.

Quizplus · Accepted Answer

The supply of pollution permits is typically inelastic because the number of permits is fixed by regulatory authorities, and line F represents this fixed supply.

Figure 10-15 -Refer to Figure 10-15. the Supply of Pollution Permits Is