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.

---

Definitions:

Ethers

A class of organic compounds containing an oxygen atom connected to two alkyl or aryl groups.

Boiling Points

The temperature at which a liquid turns to vapor at a given pressure, characteristic for each substance.

Nonhydroxylic

Pertaining to a compound or substance that does not contain hydroxyl groups (-OH).

Isopropyl Tert-Butyl Ether

A chemical compound, an ether, formed from the reaction between isopropyl alcohol and tertiary butyl alcohol.