Narrbegin Exhibit 10.4 The market for permits
-In Exhibit 10.4, a decrease in demand for permits can be due to:

Question

Narrbegin Exhibit 10.4 The market for permits  
-In Exhibit 10.4, a decrease in demand for permits can be due to:

Quizplus · Accepted Answer

A decrease in demand for permits can occur if there is a new emissions reduction technology available, as it reduces the need for permits to emit pollutants. Option A is incorrect because an economic boom typically leads to an increase in demand for permits. Option C is incorrect because a technology that increases emissions would result in an increase in demand for permits. Option D is incorrect because an increase in industry output would also lead to an increase in demand for permits.