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Currently, 100,000 Units of a Good Are Traded on a Market

Question 42

Multiple Choice

Currently, 100,000 units of a good are traded on a market. The government imposes a limit of a maximum of 50,000 units that may be traded on the market. This will:


A) create excess supply.
B) create excess demand.
C) raise price.
D) have no effect on the market.

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