Ask Question
6 August, 02:41

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.

+4
Answers (1)
  1. 6 August, 04:12
    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?
Find 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 you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers