Consumer surplus is to buyer well-being as ______is to seller well-being.

Which one of the following statements regarding transferable pollution permits is false?

a. An equilibrium permit price will be obtained through the trading of permits b. Polluting firms generally prefer emissions standards to a system of tradable permits c. A system of tradable permits was set up under the 1990 Clean Air Act Amendments d. A system of tradable permits could be used to help reduce carbon dioxide emissions e. A system of tradable permits achieves a given level of pollution reduction at the lowest cost

When a unit tax is placed on a supplier they are generally able to shift a portion of the burden to demanders by raising the prices paid by demanders

a. True b. False