:34 Refer to the figures below to answer this question: Too little Too much pollution pollution reduction reduction MC' MC SMB Pollution reduction 9:23 Cap-and-trade versus emissions fee when marginal social benefits are inelastic and costs are uncertain: ef Too little Too much pollution pollution reduction reduction MC' MC* SMB Pollution reduction 0:59:08 O Too little Too much pollution pollution reduction reduction MC' MC SMB Pollution reduction Cap-and-trade versus emissions fee when marginal social benefits are elastic and costs are uncertain: a) In case of an inelastic marginal social benefit curve, what type of pollution reduction system should the government employ? Why? b) If the social benefit curve is elastic, does your answer change? c) What are the advantages and disadvantages of cap-and-trade systems over emission fee systems when the inflation and change in marginal costs are considered?