Government-Imposed Quantity Restrictions

question 319

Multiple Choice

Government-imposed quantity restrictions

• A) generate a higher price for the good than would prevail under freely competitive markets.
• B) generate a lower price for the good than would prevail under freely competitive markets.
• C) does not affect the price of the good because quantity restrictions always ban sale of the good completely.
• D) can cause prices to either be higher or lower, but always cause excess quantities supplied to develop.

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Definitions:

K

The chemical symbol for potassium, a soft, silvery-white metallic element, essential in the human diet and various industrial applications.

K

The chemical symbol for potassium, an essential mineral and electrolyte involved in nerve function and fluid balance.

[Cl-]

The chloride ion, a chlorine atom that has gained one electron to achieve a stable electronic configuration, commonly found in salt compounds.

HAc

A common abbreviation for acetic acid, a weak organic acid with the formula CH3COOH, known for its sour taste and pungent smell.