A Meditation Class Meets on the Second Floor of a Building;

Multiple Choice

A meditation class meets on the second floor of a building; the first floor is a dance academy. The loud music from the academy disturbs the meditation classes. The academy could be soundproofed for a cost of $6,000 or move at a cost of $9,000. The class cannot be soundproofed enough to overcome the music, but could be moved for $5,000. According to the Coase theorem, a socially optimal solution can be achieved if:​

A) the government purchases the building.
B) the dance academy is relocated.
C) property rights to be noisy are granted to the nightclub.
D) property rights to a quiet environment are granted to the meditation class.
E) both the dance academy and the meditation class relocate.