Ask Question
13 February, 04:29

When the government policy is to regulate the quantity of a good that can be bought and sold rather than the price at which it is transacted, it uses a: price ceiling. price floor. quota. price control.

+1
Answers (1)
  1. 13 February, 04:52
    0
    Quota

    Explanation:

    Government uses various methods to intervene in markets.

    Price regulation or price control is done through various tools like - Price Ceiling & Price Floor. Price Ceiling & Price Floor are maximum & minimum mandated prices by government respectively.

    However, Price regulation tools have an indirect impact on Market Quantities, so government may also use direct quantity regulative tools. Quota is a quantitative restriction, specifying maximum limit of good that can be sold, exported or imported. Eg : Quotas are used as maximum import limits in international markets, as a non tariff (non tax barrier)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “When the government policy is to regulate the quantity of a good that can be bought and sold rather than the price at which it is ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers