Figure 10-7
-Refer to Figure 10-7. 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 10-7 
-Refer to Figure 10-7. 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 determined where the supply and demand for pollution permits intersect. In this scenario, the graph indicates that this intersection occurs at a price of $1,000.

Figure 10-7 -Refer to Figure 10-7. This Graph Shows the Market for the Market