Author Question: If the demand and supply curves for a commodity shift to the right and the shift in demand is ... (Read 56 times)

xclash · **on:** Jun 29, 2018

If the demand and supply curves for a commodity shift to the right and the shift in demand is greater than the shift in supply, then in comparison to the initial equilibrium, the new equilibrium will be characterized by:

A) a lower price and quantity.
B) a higher price and quantity.
C) the same price and quantity.
D) a higher price and a lower quantity.

Question 2

The required reserve ratio is 20 percent and banks have no excess reserves. Katie deposits 300 in her bank. What are the bank's excess reserves immediately after Katie makes her deposit?

A) 30
B) 90
C) 240
D) 60
E) 300