The deadweight loss from a rent ceiling below the equilibrium rent is smallest when the supply of housing is
A) perfectly elastic.
B) elastic but not perfectly elastic.
C) unit elastic.
D) inelastic but not perfectly inelastic.
E) perfectly inelastic.
E
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If a bank borrows from a Federal Reserve Bank, the interest rate is called
A) the prime rate. B) the discount rate. C) the Fed funds rate. D) the reserve availability rate.
The market for a particular good is more likely to be local
a. the lower the cost of transporting the good and the greater the ease of communication between buyers and sellers b. the higher the cost of transporting the good and the greater the ease of communication between buyers and sellers c. the lower the cost of transporting the good and the greater the ease of determining the good's quality d. the lower the cost of transporting the good and the more difficult the communication between buyers and sellers e. the higher the cost of transporting the good and the more difficult the communication between buyers and sellers