-Both Firms Depicted in Table 9

question 178

Multiple Choice

$$\begin{array}{l}\begin{array} { c c c } \hline \text { Wasle water } & \text { Firm A } & \text { Firm B } \\\hline 2,000 & \$ 100 & \$ 120 \\1,000 & \$ 103 & \$ 135 \\0 & \$ 115 & \$ 155 \\\hline\end{array}\\\text { Table } 9.5\end{array}$$

-Both firms depicted in Table 9.5 can benefit if firm A sells its pollution permit allowing it to generate 1,000 gallons of wastewater to firm B for:

• A)a price between $12 and $15.
• B)a price between $0 and $6.
• C)a price greater than $20.
• D)It is not possible for firms to benefit if firm A sells a permit to firm B.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, indicating the sensitivity of demand to price changes.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded.

Consumer Purchases

Transactions in which individuals buy goods and services for personal use, reflecting consumer spending habits and economic health.

Elasticity

A measure in economics that shows how the quantity demanded or supplied of a good changes in response to a change in price.