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If the Government Imposes a Limit on Sales of a Good

Question 196

Multiple Choice

If the government imposes a limit on sales of a good or service by licensing the right to sell a given quantity of the good, the difference between the demand and supply price is:


A) the quota rent.
B) the market price of the license if the license is tradable.
C) the quota price.
D) the quota rent plus the market price of the license if the license is tradable.

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