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    Principles of Economics Study Set 8
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    Exam 10: Externalities
  5. Question
    Suppose a New Market for Tradable Pollution Permits Is Created
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Suppose a New Market for Tradable Pollution Permits Is Created

Question 25

Question 25

Short Answer

Suppose a new market for tradable pollution permits is created. As long as there is a free market for the pollution rights, the final allocation will be __________ , regardless of the initial allocation of permits.

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