With a Corrective Tax,what Is the Nature of the Supply

question 59

Multiple Choice

With a corrective tax,what is the nature of the supply curve for pollution rights

• A)elastic
• B)perfectly elastic
• C)inelastic
• D)perfectly inelastic

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Definitions:

Specific Performance

A legal remedy where the court orders a party to perform their obligations under a contract, rather than paying damages.

Liquidated Damages

A predetermined amount of money that must be paid as damages for failure to perform under a contract.

Reliance Damages

Compensation awarded for losses suffered as a result of relying on a promise or agreement, even if a contract was never formalized.

Lost Profits

Refers to the income that a business could have earned but was unable to due to some form of disruption or another party's actions.