With Marketable Pollution Permits, If the Demand for Emissions Shifts

question 64

Multiple Choice

With marketable pollution permits, if the demand for emissions shifts to the left, the equilibrium price of permits _______ and the equilibrium quantity _______ .

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

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Definitions:

Coherence

The logical, orderly, and consistent relation of parts, often used in arguments or theories to demonstrate how something makes sense as a whole.

Relativism

The belief that the understanding of knowledge, truth, and ethics is relative to a person's culture, societal background, or historical circumstances, rather than being universal or unchanging.

Preestablished Harmony

A philosophical doctrine proposed by Leibniz suggesting that every substance is in perfect coordination with all others by virtue of God's preordained harmonious plan.

Mental Events

Phenomena that occur within the mind or consciousness, including thoughts, feelings, beliefs, and intentions.