Suppose the Government Has Imposed a Price Floor on Cellular

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.