Figure 10-10
-Refer to Figure 10-10.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 10-10 
-Refer to Figure 10-10.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 supply of permits is fixed and cannot be easily increased or decreased, thus making it less responsive to changes in price.

Figure 10-10 -Refer to Figure 10-10.The Supply of Pollution Permits Is