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Because Air Cargo as an Industry Involves the Generation of Pollutants

Question 122

Multiple Choice

Because air cargo as an industry involves the generation of pollutants in engine exhaust, the equilibrium price of air cargo services:


A) is above the optimal level, and quantity is below the optimal level.
B) is below the optimal level, and quantity is above the optimal level.
C) and quantity of trucking services are both above the optimal level.
D) and quantity of trucking services are both below the optimal level.
E) must fall in order for the market to reach equilibrium.

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