Suppose a Binding Output Quota Is Imposed in a Previously

question 52

Multiple Choice

Suppose a binding output quota is imposed in a previously competitive market with free-market equilibrium price and quantity.The result is

• A)higher price and higher quantity exchanged.
• B)higher price and lower quantity exchanged.
• C)lower price and lower quantity exchanged.
• D)lower price and higher quantity exchanged.
• E)no change in price or quantity exchanged.

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Definitions:

Production Location

The place or geographical area where goods or services are manufactured or assembled.

Organizational Hierarchy

The arrangement of individuals within an organization according to power, status, and job functions, creating a structured chain of command.

Company's Product

Goods or services offered by a company to its customers, representing the output of the company's business activities.

Weight-to-Volume Ratio

A measurement indicating how much weight occupies a certain volume, important in fields like shipping and material science.