Suppose the Government Has Imposed a Price Floor on Cellular

question 53

Multiple Choice

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

• A)Cellular phones become less popular.
• B)Traditional land line phones become more expensive.
• C)The components used to produce cellular phones become less expensive.
• D)Firms expect the price of cellular phones to fall in the future.

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