Quantity restrictions become more valuable to those holding the rights to sell the good when:
A) supply increases.
B) supply decreases.
C) demand increases.
D) demand decreases.

Question

Quizplus · Accepted Answer

When demand increases, the value of the rights to sell the good increases because the quantity restriction limits supply, allowing those with the rights to sell at higher prices due to increased demand.

Quantity Restrictions Become More Valuable to Those Holding the Rights