It is Valentine's Day and Fred is desperately searching all over town for a dozen roses to give to Diane. "I'll pay anything for a dozen roses," he says. Whether he really means it or not, the statement implies that his price elasticity of demand for roses is

When the Fed sells $100 worth of bonds to a primary dealer, reserves in the banking system

A) increase by $100. B) increase by more than $100. C) decrease by $100. D) decrease by more than $100.

Sugar is an input used to produce cereal. Suppose that the price of sugar rises. As a result

A) the supply curve for sugar will shift to the right. B) the supply curve for sugar will shift to the left. C) the supply curve for cereal will shift to the right. D) the supply curve for cereal will shift to the left.