Typically,the government limits the quantity of a good that can be bought and sold by:

A) licensing the suppliers.
B) setting a price floor below the equilibrium price.
C) maintaining the equilibrium price regardless of changes in demand and supply.
D) setting a price ceiling above the equilibrium price.

Licensing Suppliers

The process by which a business grants other businesses permission to manufacture its product or provide its service in exchange for a fee or royalty.

Price Floor

A government-imposed minimum price that can be charged for a commodity, above what would be set by market forces, to ensure that producers receive a minimum income.

Equilibrium Price

The price in the market where the amount of products offered matches the amount of products consumers want to buy.