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    Principles of Economics Study Set 8
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    Exam 10: Externalities
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    Use a Graph to Illustrate the Quantity of Pollution That
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Use a Graph to Illustrate the Quantity of Pollution That

Question 85

Question 85

Short Answer

Use a graph to illustrate the quantity of pollution that would be emitted (a) after a corrective tax has been imposed and (b) after tradable pollution permits have been imposed. Could these two quantities ever be equivalent?

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