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Might Be Affected Limiting Pollution Via The Cap And Trade Policy As Described In The Article?

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a. What is a good or service market that might be affected limiting pollution via the cap and trade policy as described in the article? Explain. Being provided with studies on automobile emissions and ways to improve the environment, it is the opinion of this writer that the automobile industry could be greatly affected by California limiting pollution via the cap and trade policy. Companies such as Toyota, Nissan, and Subaru are providing vehicle choices that contribute to lowered emissions. With the introduction of the Prius hybrid by Toyota, sales for the vehicle proved to be the greatest in areas such as California because of the C02 factors, and, therefore, the demand by consumers increased. Providing a vehicle that also meets the Partial Zero Emissions Vehicle (PZEV) standards has also been an appealing factor for the Subaru in the California area. Car manufacturers are concerned about the environment, and with advanced technology, this writer anticipates even more growth in the automobile industry. [For simplicity, do not choose “jobs” or employment. Choose a good or service that would have its supply or demand affected by the cap and trade policy.] b. Which of the shifters that shift either supply or demand (SPEND or PYNTE) does a Cap …show more content…

The number of consumers would increase who desire a vehicle that goes beyond standards, and, therefore, the demand curve would capture the growth. The representation of a rightward shift would be reflected by the increase in demand. In addition to the low emissions, the appeal of low fuel consumption would also be a desired feature of an automobile. Considering that the hybrids often get double the fuel economy of a regular vehicle, demand for qualified vehicles reflecting lowered emissions and fuel economy would also increase due of the higher gas prices in

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