A binding price ceiling in the computer market will cause:

Question

Quizplus · Accepted Answer

A binding price ceiling is a limit set by the government below the market equilibrium price. If set below the market equilibrium price, it would cause a shortage of computers because the quantity supplied would decrease as suppliers would not be willing to supply the same quantity of computers at a lower price. At the same time, the quantity demanded would increase because consumers would want to buy more computers at a lower price, creating a situation where demand exceeds supply, resulting in a shortage.

A Binding Price Ceiling in the Computer Market Will Cause