Exhibit 17-4
-The supply curve in Exhibit 17-4 represents the amount of
A)pollution individuals and firms want to dump into the river
B)the river that can still serve as a resource
C)pollution the river can accept
D)pollution the owner or manager of the resource is willing to clean up
E)the pollution-causing good supplied by the industry

Question

Exhibit 17-4 
-The supply curve in Exhibit 17-4 represents the amount of
A)pollution individuals and firms want to dump into the river 
B)the river that can still serve as a resource 
C)pollution the river can accept 
D)pollution the owner or manager of the resource is willing to clean up 
E)the pollution-causing good supplied by the industry

Quizplus · Accepted Answer

The supply curve in Exhibit 17-4 represents the amount of pollution the river can accept. As the price of pollution increases, the industry is willing to supply less of the pollution-causing good, indicating their willingness to reduce the amount of pollution they dump into the river. This suggests that the supply curve represents the maximum amount of pollution the river can accept at each price level.

Exhibit 17-4 -The Supply Curve in Exhibit 17-4 Represents the Amount of the Amount