Refer to the Figures Below to Answer This Question

question 12

Essay

Refer to the figures below to answer this question:
Cap-and-trade versus emissions fee when marginal social benefits are inelastic and costs are uncertain: Cap-and-trade versus emissions fee when marginal social benefits are elastic and costs are uncertain:
a)In case of an inelastic marginal social benefit curve,what type of pollution reduction system should the government employ? Why?
b)If the social benefit curve is elastic,do you answer change?
c)What are advantages and disadvantages of Cap-and-Trade systems over Emission Fee systems when the inflation and change in marginal costs are considered?

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Definitions:

Multiple T Tests

Statistical tests used to compare the means of two groups on several different variables or outcomes.

Grade Level

A step or stage in an education system that categorizes students based on age, development, or years of schooling.

Null Hypotheses

A hypothesis that there is no significant difference or effect and any observed difference is due to chance.

Research Hypotheses

Predictive assertions by scientists about the connection between multiple variables.