Quotas often:
A) result in few incentives to engage in illegal activities.
B) lead to deadweight losses resulting from a wedge between the price of sellers and that of demanders.
C) lead to efficient market outcomes.
D) are necessary to increase the quantity of the goods in the market.

Question

Quizplus · Accepted Answer

Quotas restrict the quantity of a good that can be sold, creating a price difference between what consumers are willing to pay and what producers receive, leading to inefficiencies and deadweight losses.

Quotas Often