question archive Under a cap-and-trade program designed to control greenhouse gas, suppose the demand for pollution rights increases as the economy improves

Under a cap-and-trade program designed to control greenhouse gas, suppose the demand for pollution rights increases as the economy improves

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Under a cap-and-trade program designed to control greenhouse gas, suppose the demand for pollution rights increases as the economy improves. What happens to the equilibrium price for the pollution rights?

A. increases

B. does not change

C. decreases

D. we do not have enough information to answer this question

Option 1

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