Figure 10-16
-Refer to Figure 10-16. This graph shows the market for pollution when permits are issued to firms and traded in the marketplace. The equilibrium price of pollution is
A)$50
B)$500
C)$1,000
D)$2,000

Question

Figure 10-16 
-Refer to Figure 10-16. This graph shows the market for pollution when permits are issued to firms and traded in the marketplace. The equilibrium price of pollution is
A)$50 
B)$500 
C)$1,000 
D)$2,000

Quizplus · Accepted Answer

The equilibrium price of pollution is where the supply and demand curves intersect, which is at 1,000 permits and $1,000 per permit. Therefore, the equilibrium price of pollution is $1,000.

Figure 10-16 -Refer to Figure 10-16. This Graph Shows the Market for the Market