Asked by
Geo999 Williams
on Oct 26, 2024
Verified
Quantity controls usually take the form of price ceilings or price floors established by the government.
Quantity Controls
Government-imposed limits on the amount of a good that can be produced or sold within a market.
Price Ceilings
A legally established maximum price for goods or services, aimed at preventing prices from rising too high.
Price Floors
Minimum legal prices set by the government for certain goods and services, intended to ensure that prices do not fall below a certain level.
- Assess the impact of governmental quantity restrictions on market effectiveness and excess.
Verified Answer
RN
Learning Objectives
- Assess the impact of governmental quantity restrictions on market effectiveness and excess.