Which Is NOT a Correct Statement About the Undesirable Side

question 203

Multiple Choice

Which is NOT a correct statement about the undesirable side effects of a quantity control?

• A) Quantity controls do not lead to deadweight loss.
• B) Some mutually beneficial transactions do not occur because of quantity controls.
• C) Quantity controls provide incentives for illegal activities.
• D) Quantity controls cause a wedge between the demand price and supply price.

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