what happens to the demand curve when an emission fee is levied against polluting firms?
what happens to the demand curve when an emission fee is levied against polluting firms?
Homework Answers
When an emission fee is levied against polluting firm,then it shifts the supply curve to upwards ,{ there is no shifts in demand curve}.
There is upward movement along demand curve , which reflect decrease in QUANTITY demanded.
So emission fee decreases supply and shifts supply curve leftwards. Due to decrease in supply or Lefttwards shift of supply curve,there is upward movement along demand curve,which shows Decrease in QUANTITY demanded.
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what happens to the demand curve when an emission fee
is levied against polluting firms?
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