Consider the US market for chocolate,a market in which the government has imposed a price ceiling.Which of the following events could convert the price ceiling from a nonbinding to a binding price ceiling?
A) a government study that shows that consuming chocolate increases the incidence of cancer.
B) a large increase in the size of the cocoa bean crop;cocoa beans are used to produce chocolate.
C) South American cocoa bean producers refuse to ship to chocolate producers in the US.
D) a sharp drop in consumer income;chocolate is a normal good.
Correct Answer:
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