Which of the following can a government use to change the quantity traded in a market?
(i) taxes
(ii) nonbinding price floors
(iii) nonbinding price ceilings
(iv) binding price floors
A)(i), (ii), (iii), and (iv)
B)only (iv)
C)(ii) and (iii)
D)(i) and (iv)

Question

Quizplus · Accepted Answer

Taxes and binding price floors directly affect the cost and price structure in a market, influencing the quantity traded. Nonbinding price floors and ceilings do not affect the market if they are set below the equilibrium price for floors or above it for ceilings, as the market naturally finds its equilibrium without their influence.

Which of the Following Can a Government Use to Change