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The price at which consumers want to buy a given quantity, the price at which producers

will supply a given quantity, and the distance between them at the quota amount are known
as
A. price ceiling, price floor, and equilibrium
B. supply price, demand price, and equilibrium
C. demand price, supply price, and equilibrium
D. demand price, supply price, and quota rent
E. selling price, demand price, and wedge

User Bhucho
by
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1 Answer

7 votes

Final answer:

The correct answer is D. demand price, supply price, and quota rent, as this includes the elements of the price consumers and producers interact at, and the potential extra earnings from market restrictions like a quota.

Step-by-step explanation:

The price at which consumers want to buy a given quantity is known as the demand price, and the price at which producers will supply a given quantity is known as the supply price. The equilibrium price and quantity occur where the supply and demand curves intersect, indicating where the quantity demanded equals the quantity supplied. When a quota is imposed, limiting the quantity that can be sold, a quota rent can be created, which is the earnings that accrue to the license-holder from ownership of the right to sell the good. Hence, the correct answer to the question is D. demand price, supply price, and quota rent.

The price at which consumers want to buy a given quantity is known as demand price, the price at which producers will supply a given quantity is known as supply price, and the distance between them at the quota amount is known as quota rent.

User Radagast The Brown
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