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

question 501

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 number of permits is

• A)50
• B)100
• C)1,000
• D)2,000

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Definitions:

Autarky Price

The price of a good within a closed economy that does not engage in trade with external entities.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

Autarky Price

The price of a good in a country without international trade, determined solely by domestic supply and demand.

International Trade

The trade of products and services across the borders of different countries or territories.