Which of the following statements is correct?
A)The use of pollution permits and corrective taxes reduces the cost of environmental protection.
B)Rich countries usually have cleaner environments than poor countries because a clean environment is like other normal goods in that it has a positive income elasticity.
C)Clean water and clean air are goods to which the law of demand applies.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All the statements are correct: A) Pollution permits and corrective taxes provide economic incentives for reducing pollution, thus lowering costs. B) Rich countries can afford more environmental protection, making a clean environment a normal good with positive income elasticity. C) Clean water and air are subject to the law of demand, as their demand increases when their price decreases.

Which of the Following Statements Is Correct