Quantity Controls Set Below the Equilibrium Quantity Cause All of the Following

question 144

Multiple Choice

Quantity controls set below the equilibrium quantity cause all of the following EXCEPT:

• A) incentives for illegal activities.
• B) missed opportunities in the form of mutually beneficial transactions that don't occur.
• C) the supply price of the quantity transacted exceeding the demand price of the quantity transacted.
• D) quota rents.

---

Definitions:

Mailbox Rule

A legal principle that deems an offer as accepted once the acceptance is dispatched, not when it is received by the offeror.

Dispatched

refers to sending off to a destination or for a specific purpose.

Effective

Achieving a desired or intended result, or coming into force; successfully producing a desired or intended result.

Mirror Image Rule

A principle in contract law that requires the acceptance of an offer to be identical to the offer itself, without any modifications, for a contract to be legally binding.