The services of real estate brokers are provided in a competitive market.If the state Board of Realtors enacts several requirements that limit the number of real estate brokers,then social welfare will most likely
A) not change, but there will be a transfer from consumer to producer.
B) not change, but there will be a transfer from producer to consumer.
C) decrease, although producers are made better off.
D) decrease, although consumers are made better off.

Question

Quizplus · Accepted Answer

Limiting the number of real estate brokers through additional requirements will likely decrease social welfare because it reduces competition, leading to higher prices and potentially lower service quality for consumers. However, the producers (real estate brokers who meet the new requirements) may benefit from reduced competition, allowing them to potentially charge higher prices and earn more.

The Services of Real Estate Brokers Are Provided in a Competitive