Exhibit 17.6

-Refer to Exhibit 17.6,which shows the market for pollution rights.The supply curve represents the amount of ______
A)toxins the firms want to dump into the river.
B)water that can be used as an input by firms.
C)toxins that can be dumped into the river without reducing the water quality below a certain level.
D)pollutants the firm is willing to clean up.
E)the pollution-causing good supplied by the industry.

Question

Exhibit 17.6
 
-Refer to Exhibit 17.6,which shows the market for pollution rights.The supply curve represents the amount of ______
A)toxins the firms want to dump into the river. 
B)water that can be used as an input by firms. 
C)toxins that can be dumped into the river without reducing the water quality below a certain level. 
D)pollutants the firm is willing to clean up. 
E)the pollution-causing good supplied by the industry.

Quizplus · Accepted Answer

The supply curve in the market for pollution rights represents the amount of toxins that can be dumped into the river without reducing the water quality below a certain level. This means that firms can only supply a certain amount of pollution before it becomes harmful to the environment, and the supply curve reflects this limit. The other choices are not accurate descriptions of the supply curve in this market.

Exhibit 17.6 -Refer to Exhibit 17.6,which Shows the Market for Pollution Rights.The