A regulation that restricts quantity is called:
A)a price ceiling.
B)a price floor.
C)a quota.
D)quota rent.

Question

Quizplus · Accepted Answer

A quota is a regulation that restricts the quantity of a good or service that can be supplied or traded in a specific market. This is different from a price ceiling, which restricts the price from exceeding a certain level, and a price floor, which sets a minimum price for a good or service. Quota rent is the economic rent generated by a quota, and is paid by those who are given the right to supply or trade the restricted quantity.

A Regulation That Restricts Quantity Is Called