Compared to the situation in which a good is legal, making the good illegal and imposing ________ results in less being sold.
A) a much higher fine on sellers than on buyers
B) a much higher fine on buyers than on sellers
C) any fine on either the buyer or the seller
D) all of the above

Question

Quizplus · Accepted Answer

Making a good illegal and imposing any fine on either the buyer or the seller reduces the quantity sold compared to when the good is legal, as it increases the cost and risk associated with the transaction.

Compared to the Situation in Which a Good Is Legal