« previous next »

Author Question: Anyone can purchase sulfur dioxide emission allowances on the Chicago Mercantile Exchange. Several ... (Read 100 times)

elizabeth18

  • Hero Member
  • *****
  • Posts: 559
on: Jun 29, 2018
Anyone can purchase sulfur dioxide emission allowances on the Chicago Mercantile Exchange. Several environmental groups have raised money to buy allowances (which they subsequently destroy).
 
  As part of their fund-raising, these groups have urged contributors to buy the allowances as gifts. As one newspaper story put it, For the environmentalist in your life, here's a gift that is sold by the ton, fits in an envelope and will last forever.
  Source for quote: Randall Edwards, Dear Santa: Please Bring Me Sulfur Dioxide for Christmas, Columbus Dispatch, December 19, 1999.
 
  What would be the impact on the price of the emission allowances in the market if more people buy sulfur emission allowances and destroy them?
  A) The price falls to zero.
  B) The price rises.
  C) The price falls but not to zero.
  D) The price remains unchanged because the allowances purchased by the environmental groups are destroyed.

Question 2

If a firm has an incentive to increase supply now and decrease supply in the future, then the firm expects that the
 
  A) demand for the product will be lower in the future than it is today.
  B) price of its product will be higher in the future than it is today.
  C) price of its product will be lower in the future than it is today.
  D) price of inputs will be lower in the future than they are today.
InMicro ¦ Hubbard, O'Brien ¦ 1st Edition
Buy Test-Bank


bhavsar

  • Sr. Member
  • ****
  • Posts: 351
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Regulation of heat exchange in the skin. Regulation of heat exchange in the skin.
The respiratory system and the process of gas exchange. The respiratory system and the process of gas exchange.
Diesel Emission Testing - Opacity Test. Diesel Emission Testing - Opacity Test.
Pollutants emission Pollutants emission
Dynamics of Capillary Exchange Dynamics of Capillary Exchange
Nitrogen dioxide decomposes at 300°C via a second-order process to produce nitrogen monoxide ... Nitrogen dioxide decomposes at 300°C via a second-order process to produce nitrogen monoxide ...
Video: Inflammation and Fever

For a complete list of videos, visit our video library