If the Government Wanted to Reduce the Quantity of a Good

question 14

Multiple Choice

If the government wanted to reduce the quantity of a good traded, it could do so by:

• A)setting a price ceiling for the good below the equilibrium price.
• B)setting a price floor for the good above the equilibrium price.
• C)tax the good more heavily.
• D)tax an input used intensively in the industry more heavily.
• E)doing any of the above.

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Definitions:

Alabama

A state in the southeastern region of the United States, known for its rich history in civil rights and as a key battleground in the American Civil War.

Harriet Tubman

An African American abolitionist, humanitarian, and during the American Civil War, a Union spy, best known for her role in helping enslaved people escape through the Underground Railroad.

Kidnapped

The act of unlawfully abducting and holding a person against their will, often for ransom or other demands.