A quantity regulation is a:
A)minimum or maximum quantity that can be sold.
B)minimum or maximum price that can be charged.
C)limit on how many firms can operate in a market.
D)limit on the number of consumers allowed in a market.

Question

Quizplus · Accepted Answer

A quantity regulation sets a minimum or maximum quantity that can be sold. This is usually done by government authorities in order to control certain goods that may have negative externalities or to ensure a certain level of quality or safety for consumers. Examples of quantity regulations include laws that restrict the amount of alcohol that can be sold or the number of licenses for taxi cabs in a city.

A Quantity Regulation Is A