This set of questions translates a supply and demand schedule for an output to demand for pollution. Suppose the output is kwh of electricity, and each kwh of electricity generates 0.5 tons of CO2. The supply and demand schedules for electricity are as follows Quantity of Electricity (kwh) Demand for Electricity (WTP) Supply of Electricity ($) Quantity of Pollution (tons of CO2) 0 $10 $0 0 1 $9 $1.5 0.5 2 $8 $3.0 1.0 3 $7 $4.5 1.5 4 $6 $6.0 2.0 5 $5 $7.5 2.5 a) Suppose the pollution price is $5/ton of CO2. What is the quantity of pollution demanded
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This set of questions translates a supply and demand schedule for an output to demand for pollution....
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