Figure 10-15
-Refer to Figure 10-15. The supply of pollution permits is
A)elastic and represented by line A.
B)inelastic and represented by line A.
C)elastic and represented by line F
D)inelastic and represented by line F.

Question

Figure 10-15 
-Refer to Figure 10-15. The supply of pollution permits is
A)elastic and represented by line A. 
B)inelastic and represented by line A. 
C)elastic and represented by line F 
D)inelastic and represented by line F.

Quizplus · Accepted Answer

The supply of pollution permits is inelastic and represented by line F. This is because the government controls the supply of permits and is unlikely to change it in the short run, even if the demand for permits increases or decreases. Therefore, the quantity supplied is relatively fixed, making the supply curve inelastic.

Figure 10-15 -Refer to Figure 10-15. the Supply of Pollution Permits Is