If a quota is set above the equilibrium quantity, there will be: no immediate effect. a supply price for the quantity transacted that exceeds the demand price of the quantity transacted. missed opportunities in the form of mutually beneficial transactions that don't occur. O incentives for illegal activities.
If a quota is set above the equilibrium quantity, there will be: no immediate effect. a supply price for the quantity transacted that exceeds the demand price of the quantity transacted. missed opportunities in the form of mutually beneficial transactions that don't occur. O incentives for illegal activities.
Chapter5: Markets In Motion And Price Controls
Section: Chapter Questions
Problem 6P
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Transcribed Image Text:If a quota is set above the equilibrium quantity, there will be:
no immediate effect.
a supply price for the quantity transacted that exceeds the demand price of the quantity transacted.
missed opportunities in the form of mutually beneficial transactions that don't occur.
O incentives for illegal activities.
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