Conceptually, the efficient level of carbon emissions is the level for which
A) the marginal benefit of reducing carbon emissions is maximized.
B) the marginal benefit of reducing carbon emissions is minimized and the marginal cost of reducing carbon emissions is maximized.
C) the marginal benefit of reducing carbon emissions is equal to the marginal cost of reducing carbon emissions.
D) the marginal cost of reducing carbon emissions is minimized.
Question 2
Suppose the value of the price elasticity of demand is -3. What does this mean?
A) A 1 percent increase in the price of the good causes quantity demanded to decrease by 3 percent.
B) A 1 increase in price causes quantity demanded to fall by 3 units.
C) A 1 percent increase in the price of the good causes quantity demanded to increase by 3 percent.
D) A 3 percent increase in the price of the good causes quantity demanded to decrease by 1 percent.
The carbon cycle.
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