Question

Question 27

Which of the following government policies will raise the quantity sold in the market?

Group of answer choices

Subsidy

Excise tax

Price ceiling

Price Floor

Answer 1

If we talk in simple terms then when the subsidy is provided then it is beneficial for the sellers and it increases the quantity supplied in the market

Excise taxes causes burden or sellers and it decreases the quantity supplied

but when we talk about price flooring then it is the help or the type of government intervention in the market and comes under the price control

it is generally done for the beneficial of the producers and it increases the quantity sold because it creates surplus in the market

the correct answer here is option D