Business, 16.07.2019 12:00 ochoanene822

Problems and applications q7 for any given demand curve for the right to pollute, the government can achieve the same outcome either by setting a price with a corrective tax or by setting a quantity with pollution permits. suppose there is a sharp improvement in the technology for controlling pollution. illustrate the effect of this development on the demand for pollution rights. demand price of pollution quantity of pollution d 1 d 2 suppose the corrective tax policy and the number of pollution permits available do not change in spite of this demand shift. as a result of the technology change, the price of pollution with a corrective tax will bethe same as the price of pollution with pollution permits, and the quantity of pollution with a corrective tax will belower than the quantity of pollution with pollution permits.

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Problems and applications q7 for any given demand curve for the right to pollute, the government can...

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