When the government policy is to regulate the quantity of a good that can be bought and sold rather than the price at which it is transacted,it uses a:
A)quota.
B)price control.
C)price ceiling.
D)price floor.

Question

Quizplus · Accepted Answer

A quota limits the amount of a good that can be bought and sold, while price controls regulate the price at which a good can be bought or sold. Price ceilings set a maximum price that can be charged for a good, while price floors set a minimum price. Therefore, the best choice is A) quota.

When the Government Policy Is to Regulate the Quantity of a Good