Movie theatres decided to increase the price of movie tickets. Holding other factors constant, what happens to the demand for popcorn in the movie theatres?

a. Demand for popcorn shifts to the left because popcorn and movies are substitute goods.
b. Demand for popcorn shifts to the left because popcorn and movies are complementary goods.
c. Demand for popcorn shifts to the right because popcorn and movies are substitute goods.
d. Demand for popcorn shifts to the right because popcorn and movies are complementary goods.

b

Economics

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What is a cap-and-trade policy? (Be certain to mention marketable permits.) Suppose there are two firms in an area, each emitting tons of sulfur

The government decides on a target level of 200 tons of sulfur, and gives each firm a permit to emit 100 tons of sulfur. Suppose Firm A is very efficient and can reduce pollution by 100 tons with an abatement cost of $500. Firm B has an older plant, so it will cost Firm B $1,000 to reduce emissions by 100 tons. What will occur with marketable permits?

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