Lower Abatement Cost and Permit Prices. Suppose new technology decreases the cost of abating pollution by half. Depict graphically the implications of the decrease in abatement cost on the equilibrium...

Lower Abatement Cost and Permit Prices. Suppose new technology decreases the cost of abating pollution by half. Depict graphically the implications of the decrease in abatement cost on the equilibrium price of marketable permits. Use Figure 31.5 on page 693 as a starting point, with an initial permit price of $21 (point b). What’s the new equilibrium price?