Which of the following would not interfere with market equilibria?
a. a minimum wage
b. a rent control
c. a non-binding price floor
d. a binding price ceiling
c
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Which of the following best describes a good with perfectly elastic demand?
A) For a given price change, the percentage change in quantity demanded will be less than the percentage change in its price. B) The demand curve for the good initially slopes upward, reaches its maximum, and then slopes downward. C) Even the smallest increase in the price of the good will cause consumers to stop consuming it completely. D) The quantity demanded of the good is completely unaffected by a price change.
Assume that C = $1,500 + 0.80(Y) and intended investment = $500 . Then the equilibrium level of national income is
a. $24,000 b. $20,000 c. $19,000 d. $15,000 e. $10,000