Consider the market for electricity and assume the market is initially in equili
ID: 1189870 • Letter: C
Question
Consider the market for electricity and assume the market is initially in equilibrium. Then, stricter environmental regulations intended to reduce greenhouse gas emissions will
Increase the equilibrium price and decrease the equilibrium quantity
Increase the equilibrium price and the equilibrium quantity
Decrease the equilibrium price and increase the equilibrium quantity
Decrease the equilibrium price and the equilibrium quantity
A.Increase the equilibrium price and decrease the equilibrium quantity
B.Increase the equilibrium price and the equilibrium quantity
C.Decrease the equilibrium price and increase the equilibrium quantity
D.Decrease the equilibrium price and the equilibrium quantity
Explanation / Answer
The stricter environmental regulations intended to reduce greenhouse gas emissions will
A. Increase the equilibrium price and decrease the equilibrium quantity.