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Other Things Equal, If the Government Increased the Quantity of Pollution

Question 98

Multiple Choice

Other things equal, if the government increased the quantity of pollution rights to be sold,


A) pollution would not be affected
B) the price of pollution rights would rise, and the amount of pollution would decrease
C) the price of pollution rights would fall, and the amount of pollution would decrease
D) the price of pollution rights would fall, and the amount of pollution would increase
E) the price of pollution rights would rise, and the amount of pollution would increase

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