Refer to Figure 13-8. At the profit-maximizing output level the firm will

Pollution regulation by requiring firms to implement specific equipment or actions is known as ___________

a. Pigouvian or pollution taxes b. tradable pollution permits c. pollution standards d. technology-based regulations e. None of the above.

Which of the following statements is true?

A) If both demand and supply increase, there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease. B) A decrease in demand causes equilibrium price to fall; the decrease in price then results in a decrease in quantity supplied. C) A decrease in demand causes a decrease in equilibrium price; the decrease in price causes supply to decrease. D) If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.