Economies of scale is a short-run phenomenon

When a new depositor opens a checking account at the First National Bank, the bank's assets ________ and its liabilities ________

A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease

If Katherine claims that when it comes to buying shoes, "price is no object," her demand curve for shoes is likely to be

a. horizontal b. nonexistent c. upward sloping d. highly inelastic e. unit elastic