(Figure: The Demand Curve) Look again at the figure The Demand Curve. Using the midpoint method, the price elasticity of demand between $6 and $8 is approximately:

Which of the following is likely to happen if the reserves held at the Fed by the private banks decrease?

A) Banks will make more loans. B) The M2 measure of money will decrease. C) The nominal interest rate will decrease. D) Labor demand will increase.

Refer to Figure 16-5. Suppose the firm represented in the diagram decides to act as a monopolist and charge a single price. What is the profit maximizing quantity produced and what is the price charged?

A) Q = 480 units; P = $16 B) Q = 240 units; P = $28 C) Q = 560 units; P = $12 D) Q = 320 units; P = $24