Question: Government - imposed quantity restrictions does not affect the price of the good because quantity restrictions always ban sale of the good completely. can cause
Governmentimposed quantity restrictions
does not affect the price of the good because quantity restrictions always ban sale of the good completely.
can cause prices to either be higher or lower, but always cause excess quantities supplied to develop.
generate a higher price for the good than would prevail under freely competitive markets.
generate a lower price for the good than would prevail under freely competitive markets.
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