Suppose that a new chief of the government agency discussed in Problem 31-7 decides to restrict considerably

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Suppose that a new chief of the government agency discussed in Problem 31-7 decides to restrict considerably the extent to which firms in this nation can legally utilize pollution allowances. Evaluate the effects this policy change will have on the market price of pollution allowances, and discuss whether the policy appears to be fully consistent with the original intent of creating the market for these allowances.
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