Multiple Choice
The following graph shows the market for pollution rights. Which of the following could not have caused an increase in the demand for pollution rights?
Figure 17.4
A) An increase in the number of polluting firms
B) An increase in the ability of the firm to absorb pollutants
C) A decrease in the cost of pollution abatement equipment
D) The ability of existing firms to sell pollution rights at a price lower than the market price.
E) The subsidy provided by the government on the price of pollution rights
Correct Answer:
Verified
Correct Answer:
Verified
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