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:

Wage Compression

A situation where there is a diminishing difference in pay between employees regardless of their skills, experience, or job responsibilities.

Pay Structure

The organization of different salary levels and scales that reflects the hierarchy of positions, responsibilities, and salaries within a company.

CPI

The Consumer Price Index is a calculation that determines the overall average cost of a selected collection of consumer goods and services, including categories like food, transportation, and healthcare.

Internal Factors

Elements within an organization that can influence its operations such as culture, values, and internal relationships.