When the government policy is to regulate the quantity of a good that can be bought and sold rather than the price at which it is transacted, it uses a: price ceiling. price floor. quota. price control.

Quota

Explanation:

Government uses various methods to intervene in markets.

Price regulation or price control is done through various tools like - Price Ceiling & Price Floor. Price Ceiling & Price Floor are maximum & minimum mandated prices by government respectively.

However, Price regulation tools have an indirect impact on Market Quantities, so government may also use direct quantity regulative tools. Quota is a quantitative restriction, specifying maximum limit of good that can be sold, exported or imported. Eg :  Quotas are used as maximum import limits in international markets , as a non tariff (non tax barrier)

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