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Suppose the Government Has Imposed a Price Floor on Televisions

Question 213

Multiple Choice

Suppose the government has imposed a price floor on televisions.Which of the following events could transform the price floor from one that is not binding into one that is binding?


A) Firms expect the price of televisions to rise in the future.
B) The number of firms selling televisions decreases.
C) Consumers' income decreases,and televisions are a normal good.
D) The number of consumers buying televisions increases.

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