When the government requires a license or government approval for a company to produce and sell a product, then in the market for that product:
A)the price will be lower.
B)demand must be strong.
C)companies are using a supply-side strategy.
D)there will be fewer sellers.

Question

Quizplus · Accepted Answer

Government approval or licensing requirements limit entry into the market, leading to fewer sellers. This may result in higher prices for consumers.

When the Government Requires a License or Government Approval for a Company