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    Microeconomics Study Set 40
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    Exam 16: Externalities
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    If the Number of Available Tradable Emissions Permits Increases, the Equilibrium
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If the Number of Available Tradable Emissions Permits Increases, the Equilibrium

Question 22

Question 22

Multiple Choice

If the number of available tradable emissions permits increases, the equilibrium price of the permits and the equilibrium quantity _.


A) increases; does not change
B) increases; increases
C) decreases; does not
D) change decreases; increases

Correct Answer:

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