Asked by Elisa Otero on Jul 28, 2024
Verified
When the government imposes a quota on sales of a good or service,it usually licenses the right to sell a given quantity of the good.The market price of the license is equal to the:
A) demand price of the good.
B) wedge that represents the difference between the demand price and the supply price.
C) supply price of the good.
D) equilibrium price of the good.
Market Price
The present cost for purchasing or selling an asset or service.
Demand Price
Demand price is the maximum price consumers are willing to pay for a product or service, influenced by factors like income, preferences, and availability of substitutes.
Supply Price
The price at which producers are willing to sell a product, which typically varies in direct relation to the quantity supplied.
- Realize the task and quantifying procedure of quota rent in markets with quota implementations.
Verified Answer
Learning Objectives
- Realize the task and quantifying procedure of quota rent in markets with quota implementations.
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