Exhibit 17-4 Which of the following could not have caused the increase in demand indicated in Exhibit 17-4?
A) new firms located on the river
B) the pollution was discovered to be more hazardous than had previously been supposed
C) the cost of pollution abatement equipment rose
D) consumers wanted to buy more of the good produced by the polluters
E) the government subsidized firms so they could better afford to buy pollution rights
Correct Answer:
Verified
Q105: When a system of pollution rights is
Q106: Exhibit 17-4 Q107: According to the Coase theorem, externality problems Q108: A metal-stamping factory moves next to a Q109: The Coase theorem argues that the assignment Q111: According to the Coase theorem, if bargaining Q112: According to the Coase theorem, in order Q113: Government allocation of pollution rights cannot be Q114: Fishing, the lumber industry, tourism, and even Q115: Exhibit 17-4
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