For any given demand curve for the right to pollute, the government can achieve the same outcome either by setting a price with a corrective tax or by setting a quantity with pollution permits. Suppose there is a sharp improvement in the technology for controlling pollution. Illustrate the effect of this development on the demand for pollution rights. Demand Price of Pollution Demand Quantity of Pollution Suppose the corrective tax policy and the number of pollution permits available do not change in spite of this demand shift. As a result of the technology change, of pollution will change under pollution permits systems, and of pollution will change under a corrective tax system