If government were to issue a fixed number of licenses to produce a good or provide a service, this would likely:
A) lower the price of the good or service to consumers.
B) lower the wage received by those who have licenses.
C) increase the wage received by those who have licenses.
D) increase the demand for goods.

Question

Quizplus · Accepted Answer

Issuing a fixed number of licenses creates a limited supply of producers, which can lead to higher prices for the good or service and higher wages for those holding the licenses due to reduced competition.

If Government Were to Issue a Fixed Number of Licenses