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

Question

Quizplus · Accepted Answer

All of the given options can be used by a government to change the quantity traded in a market. 
(i) Quotas can limit the quantity of a product that can be imported or exported, thus affecting the quantity traded.
(ii) Binding price floors can set a minimum price for a product, which can increase the quantity supplied and reduce the quantity demanded.
(iii) Binding price ceilings can set a maximum price for a product, which can reduce the quantity supplied and increase the quantity demanded.
(iv) Taxes can be used to increase the cost of production or sale, which can reduce the quantity supplied and increase the price paid by consumers.

Which of the Following Can a Government Use to Change