Ask Question
BusinessBusiness
2 February, 21:57

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.

+4
Answers (2)
  1. 2 February, 22:20
    0
    We answer this question by bringing about the following supposition:

    The corrective tax policy and the number of pollution permits available do not change in spite of this demand shift.
  2. 2 February, 22:21
    0
    Demand curve would move inside (to the left) because now expertise are offered that diminishes pollution so companies will request fewer pollution privileges.

    With same amount of pollution authorizations with the remedial tax, the price of effluence with a remedial tax would not change and would be same as the value of pollution with licenses. Amount of pollution with a remedial tax drops so it is lower than the amount of pollution without licenses.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Problems and applications q7 for any given demand curve for the right to pollute, the government can achieve the same outcome either by ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Gourd Supermarkets has an extensive training program for all new employees and then has all employees spend a day in customer service and workplace safety training each year. what contract is it: old social or new social?
Answers (1)
The Upper Tier has a current debt-equity ratio of. 52 and a target debt-equity ratio of. 45. The cost of floating equity is 9.5 percent and the flotation cost of debt is 6.6 percent. What should the firm use as their weighted average flotation cost?
Answers (1)
According to Erik Erikson, in late adulthood, the individual reaches the eighth and final stage of the life span in which one reviews and evaluates one's life and the choices one has made.
Answers (1)
wifty Corporation has 9,200 shares of common stock outstanding. It declares a $3 per share cash dividend on November 1 to stockholders of record on December 1. The dividend is paid on December 31.
Answers (1)
If uncollectible accounts are determined by the aging of receivables method to be $1,150, the uncollectible account expense for 2014 would be $350. The balance of the allowance account after the adjusting entry would be?
Answers (1)
New Questions in Business
Pool Line is the manufacturer of a pool cleaning system that has been called by the pool construction industry, "the miracle we have waited a lifetime for." The cleaning system is very effective and recommended by all consumer magazines.
Answers (1)
Use the following example to answer the following questions: Imagine that Stella deposits $25,000 in currency (which she had been storing in her closet) into her checking account at the bank.
Answers (1)
Barr Corp. started a long-term construction project in 20X0. The following data relate to this project: Contract price $4,200,000 Costs incurred in 20X0 $1,750,000 Estimated costs to complete $1,750,000 Progress billings $900,000 Collections on
Answers (1)
Bob contributed a building with an adjusted basis to Bob of $50,000 and a fair market value of $150,000 subject to a mortgage of $120,000 in exchange for a 30 percent interest in the Alpha Partnership. Alpha will assume the mortgage on the building.
Answers (1)
Nareen is single, 68 years old, and reports the following in 2018: a. $12,000 alimony received (divorced in 2010) b. $82,520 Schedule C profit c. $3,500 SEP (self-employed pension) plan contribution d. $7,150 qualified dividends e.
Answers (1)
Home » Business » 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.
Sign Up Forgot Password?