Multiple Choice
Which statement about the undesirable side effects of a quantity control is NOT correct?
A) Quantity controls do not lead to deadweight loss.
B) Some mutually beneficial transactions do not occur because of quantity controls.
C) Quantity controls provide incentives for illegal activities.
D) Quantity controls cause a wedge between the demand price and supply price.
Correct Answer:
Verified
Correct Answer:
Verified
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