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About Price and Quantity Regulations
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The economics of regulation is known as regulatory economics. In case of the sense of the application of the law which is laid down by the government or any agency of an independent kind for various purposes.
The different types of purposes can be:
- Remedying market failure
- Benefitting Politicians
- Centrally Planning of an Economy
- Enriching well-connected Firms
The meanings of Price and Quantity Regulations, in simple words are explained below:
- Price Regulation
This can be explained as a practice of governments which is involved with the dictation of how much of a certain products or commodities may be sold for in different stages of a production process and also in the retail market.
- Quantity Regulation
Many financial intermediaries regulations and also many other regulations like pollution controls, blue laws, zoning restrictions, etc. is known for taking the form of quantity controls as opposed to taxes.
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