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      Question

      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 Correct Answer Incorrect Answer
      B The number of firms selling laptop computer decreases Correct Answer Incorrect Answer
      C Consumers’ income decreases and laptop computers are a normal good Correct Answer Incorrect Answer
      D The number of consumers buying laptop computers decreases Correct Answer Incorrect Answer

      Solution

      The number of firms selling laptop computer decreases, supply curve shifts leftward resulting in a shortage and price ceiling becomes binding

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