With pollution permits, the supply curve for pollution rights is
A)perfectly elastic.
B)perfectly inelastic.
C)upward sloping.
D)downward sloping.

Name: With pollution permits, the supply curve for pollution rights is A)perfectly elastic. B)perfectly inelastic. C)upward sloping. D)downward sloping.
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Question

Quizplus · Accepted Answer

The supply curve for pollution rights is perfectly inelastic because the total amount of pollution allowed is fixed by the regulatory authority, regardless of the price.

With Pollution Permits, the Supply Curve for Pollution Rights Is