If income decreases by 20% and, in response, the quantity of housing demanded decreases by 14%, then the income elasticity of demand for housing is

Governments sometime create an excess supply of a product by setting a minimum price that is greater than the equilibrium price, resulting in a permanent excess supply of the product. This is known as a price ceiling

Indicate whether the statement is true or false

As firms enter a perfectly competitive market, the price

A) falls and the existing firms' economic profits do not change. B) rises and the existing firms' economic profits decrease. C) falls and the existing firms' economic profits decrease. D) falls and the existing firms' economic losses do not change.