If a binding price ceiling were imposed in the computer market,

Question

Quizplus · Accepted Answer

If a binding price ceiling is imposed in the computer market, it means that the maximum price that can be charged for computers is below the market equilibrium price. This will create a situation where the demand for computers is higher than the supply, as suppliers will be less willing to produce and sell computers at a lower price. As a result, a shortage of computers would develop, with more buyers chasing fewer computers available in the market. Therefore, only option C is correct.

If a Binding Price Ceiling Were Imposed in the Computer