When Marketable Pollution Permits Are Used, If the Demand for Emissions

question 82

Multiple Choice

When marketable pollution permits are used, if the demand for emissions shifts to the right, the equilibrium price of permits _______ , and the equilibrium quantity _______ .

• A) falls; increases
• B) increases; stays the same
• C) falls; falls
• D) stays the same; increases

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Definitions:

Psychological Adjustment

The process of balancing and adapting one's personal or psychological aspects to the demands or needs of social and environmental contexts.

Congruent

In psychology, referring to consistency and alignment between an individual's self-perception and actual experiences or behaviors.

Environment

The surrounding conditions, influences, or forces which affect the life, behavior, or development of an organism or community.

Innate Tendency

An inherent inclination or natural disposition in organisms to behave in a certain way.