Exhibit 17-4
-In Exhibit 17-4,as demand increases,
A)pollution increases
B)the economic damage done by pollution increases
C)the pollution level is the same,but the price of the right to pollute increases
D)the pollution level is the same,but the benefit of cleaning up the pollution increases
E)the cost of cleaning up the rivers increases

Question

Exhibit 17-4 
-In Exhibit 17-4,as demand increases,
A)pollution increases 
B)the economic damage done by pollution increases 
C)the pollution level is the same,but the price of the right to pollute increases 
D)the pollution level is the same,but the benefit of cleaning up the pollution increases 
E)the cost of cleaning up the rivers increases

Quizplus · Accepted Answer

As demand increases, the pollution level remains the same due to regulatory limits, but the price of the right to pollute increases because the demand for these rights rises.

Exhibit 17-4 -In Exhibit 17-4,as Demand Increases