Chapter 4 – Price Controls and Quotas: Meddling with Markets Flashcards
1
Q
a price ceiling
A
a maximum price sellers are allowed to charge for a good or service
2
Q
a price floor
A
a minimum price buyers are required to pay for a good or service.
3
Q
A quantity control / quota
A
is an upper limit on the quantity of some good that can be bought or sold.
3
Q
license
A
gives its owner the right to supply a good.
