A quantity control on milk production is a ____. It is set _____ the equilibrium quantity.
A)quota; above
B)quota rent; below
C)quota; below
D)quota rent; above

Question

Quizplus · Accepted Answer

A quota is a limit placed on the quantity of a good that can be produced, bought, or sold. Quotas are set below the equilibrium quantity in order to reduce the supply of the good and increase its price. Therefore, the correct answer is C, quota below the equilibrium quantity.

A Quantity Control on Milk Production Is a ____