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b) The following figure shows a demand cunre for pollution rights and the supply curve for pollution permits. The latter is shown to be inelastic. Thii is because the government has set the quantity of pollution permits available (i.e. it is unresponsive to price). Suppose there is a sharp improvement in the technology for controlling pollution, what is the effect on the price and quantity of pollution under the system describe by the gure below? Price of pollution Supply of pollution permits