Refer to Figure 10-7. This graph shows the market for pollution when permits are issued to firms and traded in the marketplace. The equilibrium number of permits is

A) 50.
B) 100.
C) 1,000.
D) 2,000.

Equilibrium Number

When market demand equals supply, leading to stability in prices.

Pollution Permits

Licenses that allow the holder to emit a specific amount of pollutants into the environment, used in regulatory strategies to reduce pollution.

Marketplace

A marketplace is a physical or digital venue where buyers and sellers come together to exchange goods, services, or information.