If the Government Imposes a Limit on Sales of a Good

question 94

Essay

If the government imposes a limit on sales of a good or service by issuing a license that gives the owner the right to sell a given quantity of the good, the difference between the demand and supply price is:
A.the quota rent.
B.the market price of the license.
C.the quota price.
D.the quota rent or the market price of the license.

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Definitions:

Settled Out Of Court

A legal dispute resolution where the parties reach an agreement privately without a trial.

Go To Trial

The process in which a legal case is presented before a judge or jury in a court of law to resolve a dispute between parties through examination of evidence and application of legal principles.

Joint Legal Custody

A legal arrangement where both parents share the responsibility and authority to make decisions concerning their child's upbringing.

Major Decisions

Significant rulings or conclusions made by an authoritative body or individual that have a considerable impact.