Figure 10-16 -Refer to Figure 10-16. This Graph Shows the Market for the Market

question 252

Multiple Choice

Figure 10-16
-Refer to Figure 10-16. This graph shows the market for pollution when permits are issued to firms and traded in the marketplace. The equilibrium price of pollution is

• A)$50
• B)$500
• C)$1,000
• D)$2,000

---

Definitions:

Lower Limit

The smallest value that a given set, statistical sample, or data category can take on or be assigned.

Upper Limit

The maximum level or value that can be reached or is allowable in a given context.

Supply and Demand

Fundamental economic model describing how prices vary as a result of a balance between product availability and consumer demand.

Price Floor

A government or group-imposed price control that sets the lowest legal price a commodity can be sold at.