If the government imposes a limit on the number of liquor (alcohol) licenses it approves in an economy

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    the quantity of alcoholic beverages sold will fall and prices will rise, causing a deadweight loss to society.
     the quantity of alcoholic beverages sold will fall and prices will rise, causing an increase in producer surplus from higher prices that is offset by a loss of producer surplus from reduced output.
     the quantity of alcoholic beverages sold will fall and prices will rise, causing a loss of consumer surplus.
     All of the above.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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All of the above.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



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