demand for sulfur dioxide by coal-fired electricity electricity producers is: P= 1,000 - 16Q where Q is quantity of sulfur dioxide measured in thousands of tons, and P is price per ton of sulfur dioxide.

Supposed EPA restricted the number of one-ton sulfur dioxide permits to 50,000.What would be the price of sulfur permits once all permits are traded?

To find the price of sulfur permits once all permits are traded, we first need to determine the equilibrium quantity of sulfur permits. In this case, the equilibrium quantity occurs when the quantity demanded equals the quantity supplied.

Given that the demand for sulfur dioxide by coal-fired electricity producers is represented by the equation P = 1,000 - 16Q and the EPA restricted the number of permits to 50,000 (Q = 50), we can set the quantity demanded equal to the quantity supplied as follows:

1,000 - 16Q = 50,000

To solve for Q, let's rearrange the equation:

16Q = 1,000 - 50,000
16Q = -49,000
Q = -49,000/16
Q ≈ -3,062.5

Since the quantity of permits cannot be negative, we must round Q down to the nearest whole number:

Q = -3,062

This means that the equilibrium quantity of sulfur permits is 3,062.

To find the price of sulfur permits, we can substitute this value of Q into the demand equation:

P = 1,000 - 16Q
P = 1,000 - 16(3,062)
P ≈ 1,000 - 49,792
P ≈ -48,792

Again, we cannot have a negative price, so we round it to zero:

P = $0

Therefore, the price of sulfur permits once all permits are traded would be $0.