Suppose the Government Has Imposed a Price Ceiling on Laptop

question 212

Multiple Choice

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

• A)Improvements in production technology reduce the costs of producing laptop computers.
• B)The number of firms selling laptop computers decreases.
• C)Consumers' income decreases,and laptop computers are a normal good.
• D)The number of consumers buying laptop computers decreases.

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Definitions:

Nonpayment of Rent

The failure to fulfill the obligation of paying rent as stipulated in a rental agreement or lease.

Periodic Leasehold

A lease agreement that automatically renews for successive periods until either party terminates the tenancy, often seen in month-to-month tenancies.

Terminated

Indicates the end or conclusion of something, such as a contract, job position, or legal status, often before its intended completion time.

Adequate Notice

Adequate notice refers to sufficient information and time being provided to individuals or parties, allowing them to prepare and respond appropriately to legal actions or changes.