Tradable pollution permits are a(n): tax system for internalizing pollution costs to the market. tax system for internalizing pollution costs to the market. subsidy system for charging consumers for the use of common property resources. subsidy system for charging consumers for the use of common property resources. system of voluntary negotiations between polluters and damaged parties. system of voluntary negotiations between polluters and damaged parties. organized exchange of licenses that enable the holder to pollute up to a specified amount during a given time period.

Total marketing effort is a term used to describe the critical decision factors that affect demand: price, advertising, distribution, and product quality. define the variable x to represent total marketing effort. a typical model that is used to predict demand as a function of total marketing effort is based on the power function: d = axb suppose that a is a positive number. different model forms result from varying the constant b. sketch the graphs of this model for b = 0, b = 1, 0< b< 1, b< 0, and b> 1. (we encourage you to use excel to do this.) what does each model tell you about the relationship between demand and marketing effort? what assumptions are implied? are they reasonable? how would you go about selecting the appropriate model?