Narrbegin Exhibit 10.3 Price and demand for permits data
$$\begin{array} { |c | c |}
\hline \text { Price } & \text { Quantity } \
\hline 10 & 110 \
\hline 20 & 100 \
\hline 30 & 90 \
\hline 40 & 80 \
\hline 50 & 70 \
\hline 60 & 60\
\hline
\end{array}$$ Narrend
-In Exhibit 10.3, if the 'cap' is set at 80 permits, and the demand for the permits decreased by 10 units at each price level, the resulting price of permits is equal to:

Question

Narrbegin Exhibit 10.3 Price and demand for permits data
 $$\begin{array} { |c | c |} 
\hline \text { Price } & \text { Quantity } \
\hline 10 & 110 \
\hline 20 & 100 \
\hline 30 & 90 \
\hline 40 & 80 \
\hline 50 & 70 \
\hline 60 & 60\
\hline
\end{array}$$ Narrend
-In Exhibit 10.3, if the 'cap' is set at 80 permits, and the demand for the permits decreased by 10 units at each price level, the resulting price of permits is equal to:

Quizplus · Accepted Answer

The table shows that at a cap of 80 permits, the equilibrium price is $30 when demand is at 70 units. If demand decreases by 10 units at each price level, then the new demand curve would be shifted to the left. Therefore, the new equilibrium price would be at the intersection of the new demand curve and the supply curve, which is likely to be at a lower price level. This corresponds to a price of $30 at demand level of 70, which implies that the new equilibrium price would be lower than $30. The only option that falls below $30 is option B, which is $10. Therefore, the answer is (B) $10.

Narrbegin Exhibit 10 Narrend -In Exhibit 10

Narrbegin Exhibit 10 Narrend
-In Exhibit 10