Problem
Regulations Eliminate a Market? Consider a market in which the initial equilibrium quantity of a polluting good is 20 tons.
a. Use a graph to show the effects of a pollution tax that decreases the equilibrium quantity to 12 tons.
b. Consider a command-and-control policy that generates the same volume of pollution as the pollution tax but decreases the equilibrium quantity of the polluting good to zero. Use a graph to show the effects of the command-and-control policy.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.