Suppose that a new chief of the government agency that caps aggregate emissions of an air pollutant within its borders, establishes initial pollution allowances across all firms, and grants the firms the right to trade these allowances among themselves, decides to restrict considerably the extent to which firms in this nation can legally utilize pollution allowances. What effects will this policy change have on the market price of pollution allowances? A. The market price of pollution allowances will decrease. B. The market price of pollution allowances will increase only if the amount of pollution decreases, otherwise there will be no effect. C. The market price of pollution allowances will remain unchanged. D. The market price of pollution allowances will increase. Does the above policy appear to be fully consistent with the original intent of creating the market for these allowances? A. No, government should not impose any control in a market. B. Yes, without these controls the price of pollution allowances will be very high and the market will cease to function. C. No, since the market for pollution allowances cannot function unless the firms are free to buy as many allowances as they wish. D. Yes, since government imposes price and quantity controls in many markets