If the number of available tradable emissions permits increases,the equilibrium price of the permits _____ and the equilibrium quantity _____.
A)increases;does not change
B)increases;increases
C)decreases;does not change
D)decreases;increases

Question

Quizplus · Accepted Answer

According to the law of supply and demand, an increase in the supply of a good (in this case, emissions permits) leads to a decrease in the equilibrium price and an increase in the equilibrium quantity. Therefore, the correct choice is D.

If the Number of Available Tradable Emissions Permits Increases,the Equilibrium