Currently, 100,000 units of a good are traded on a market. The government imposes a limit of a maximum of 50,000 units that may be traded on the market. This will:
A)create excess supply.
B)create excess demand.
C)raise price.
D)have no effect on the market.

Question

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The Answer of Currently, 100,000 units of a good are traded on a market. The government imposes a limit of a maximum of 50,000 units that may be traded on the market. This will:
A)create excess supply.
B)create excess demand.
C)raise price.
D)have no effect on the market.

Currently, 100,000 Units of a Good Are Traded on a Market