The Figure Given Below Shows the Demand and Supply Curves

question 68

Multiple Choice

The figure given below shows the demand and supply curves of automobiles.Figure 13.3
In the figure,
D: Demand curve of automobiles
S: Supply of automobiles prior to the tax
S+t: Supply of automobiles after the tax

-Suppose the current price of a marketable permit to emit one ton of sulfur dioxide is $100. If the marginal cost for a firm to reduce one ton of sulfur dioxide is $80, then:

• A)the firm will buy the permit and emit one more ton of sulfur dioxide.
• B)the firm will reduce its emissions of sulfur dioxide by one ton.
• C)the firm will buy the permit and increase its emissions by 20 tons.
• D)the firm will shut down.
• E)the firm will be willing to pay up to $200 for a permit.

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Definitions:

Double Effect

A principle in ethics that allows actions which have both a positive effect and a harmful side effect, if the action itself is morally good or neutral, the good effect is intended, and the good outweighs the bad.

Perfect Duty

A moral obligation that must always be followed without exception.

Beneficence

The ethical principle of acting to benefit others, promoting their well-being.

Rational Duty

A principle requiring individuals to act according to reason and logic in fulfilling their obligations or duties.