Suppose the government has imposed a price ceiling on televisions.Which of the following events could transform the price ceiling from one that is not binding into one that is binding?
A) Firms take advantage of an advance in technology that reduces the amount of labor necessary to produce televisions.
B) The number of firms selling televisions decreases.
C) Consumers' income decreases, and televisions are a normal good.
D) All of the above are correct.
Correct Answer:
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Q19: When,in a particular market,the law of demand
Q20: A shortage results when
A)a binding price ceiling
Q21: Figure 6-3 Q22: A price floor is not binding if Q23: A binding price floor causes Q25: When a price floor is binding,the equilibrium Q26: A price floor is binding if it Q27: Figure 6-2 Q28: If a price ceiling is a binding Q29: Figure 6-2 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)the
A)excess demand.
B)a shortage.
C)a
A)is
