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 price of pollution is

A) $50.
B) $500.
C) $1,000.
D) $2,000.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in a stable market condition.

Pollution

The release of harmful substances or products into the environment as a result of human activity.

Marketplace

A physical or digital location where goods and services are exchanged between buyers and sellers.