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:

Problem Recognition

The first step in the consumer decision-making process, where a consumer identifies a need or problem that needs to be solved.

Alternative Evaluation

The phase in the consumer decision process where individuals assess the benefits and drawbacks of different choices available to them before making a purchasing decision.

Antecedent States

Preceding conditions that influence individuals' behavior or attitudes in a particular context.

Evaluative Criteria

The characteristics, attributes, or dimensions that consumers use to compare and judge the merits and drawbacks of products and services.