According to the Market in the Graph Shown, at Which

question 4

Multiple Choice

According to the market in the graph shown, at which of the following prices could a binding price floor be set?

• A)$10
• B)$6
• C)$8
• D)A binding price floor could not be set at any of these prices.

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Definitions:

Disposable Income

The financial scope households possess for spending and saving activities, following income taxes.

APC

The Average Propensity to Consume denotes the percentage of income allocated towards consumption.

Disposable Income

Net disposable financial resources for households focusing on savings and spending post income tax adjustments.

Disposable Income

The budgetary provision for households for saving and spending after income taxes have been processed.