If the number of available tradable emissions permits increases, the equilibrium price of the permits and the equilibrium quantity _.
A)increases; does not change
B)increases; increases
C)decreases; does not
D)change decreases; increases

Question

Quizplus · Accepted Answer

When the number of available tradable emissions permits increases, the supply of permits increases, leading to a decrease in the equilibrium price and an increase in the equilibrium quantity.

If the Number of Available Tradable Emissions Permits Increases, the Equilibrium