CONTROLLING QUANTITIES

CONTROLLING QUANTITIES - CONTROLLINGQUANTITIES

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CONTROLLING QUANTITIES - quantity control , or  quota,  is an upper limit on the quantity of some  good that can be bought or sold.  - The total amount of the good that an be legally transacted is the  quota  limit - The government typically limits quantity in a market by issuing  licenses which give owners the right to supply a good - Quantity controls introduced to address a temporary problem become  politically hard to remove later because the beneficiaries don’t want them  abolished, even after the original reason for their existence is long gone  o The Anatomy of Quantity Controls     The  demand price  of a given quantity is the price at which  consumers will demand that quantity The  supply price  of a given quantity is the price a which  producers will supply that quantity A quantity control, or quota, drives a  wedge  between the 
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This note was uploaded on 03/16/2012 for the course ECON 101 taught by Professor Hansen during the Fall '07 term at Wisconsin.

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CONTROLLING QUANTITIES - CONTROLLINGQUANTITIES

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