Figure 5.11

Figure 5.12
-Refer to Figure 5.11 and Figure 5.12 of to answer this question:
A) In case of an inelastic marginal social benefit curve,what type of pollution reduction system should the government employ? Why?
B)If the social benefit curve is elastic,do you answer change?
C)What are advantages and disadvantages of Cap-and-Trade systems over Emission Fee systems when the inflation and change in marginal costs are considered?

Question

Figure 5.11

Figure 5.12
-Refer to Figure 5.11 and Figure 5.12 of to answer this question:
A) In case of an inelastic marginal social benefit curve,what type of pollution reduction system should the government employ? Why? 
B)If the social benefit curve is elastic,do you answer change? 
C)What are advantages and disadvantages of Cap-and-Trade systems over Emission Fee systems when the inflation and change in marginal costs are considered?

Quizplus · Accepted Answer

The Answer of 
Figure 5.11

Figure 5.12
-Refer to Figure 5.11 and Figure 5.12 of to answer this question:
A) In case of an inelastic marginal social benefit curve,what type of pollution reduction system should the government employ? Why? 
B)If the social benefit curve is elastic,do you answer change? 
C)What are advantages and disadvantages of Cap-and-Trade systems over Emission Fee systems when the inflation and change in marginal costs are considered?