20 18 16 MCA 14 12 10 MCA2 8 6 4 P 90 100 10 20 30 40 50 60 70 80 Q2. What will be the equilibrium price of permits? Q3. How many permits are traded in equilibrium? Q4. In equilibrium, how much units of pollution will county 1 EMIT? Q5. In equilibrium, how much units of pollution will county 2 EMIT? %24
20 18 16 MCA 14 12 10 MCA2 8 6 4 P 90 100 10 20 30 40 50 60 70 80 Q2. What will be the equilibrium price of permits? Q3. How many permits are traded in equilibrium? Q4. In equilibrium, how much units of pollution will county 1 EMIT? Q5. In equilibrium, how much units of pollution will county 2 EMIT? %24
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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! The following diagram can be used to answer the following questions. Please explain the answer to the following question, thanks.

Transcribed Image Text:20
18
16
MCA1
14
12
10
MCA2
6.
4
10
20
30
40 50
60
70
80
90 100
Q2. What will be the equilibrium price of
permits?
Q3. How many permits are traded in
equilibrium?
Q4. In equilibrium, how much units of
pollution will county 1 EMIT?
Q5. In equilibrium, how much units of
pollution will county 2 EMIT?
%24
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