At higher interest rates, banks will want to hold more reserves.

If the market clearing price of computer tablets rises from $400 to $600, and the market clearing output increases from 5 million to 7 million units,

A) demand decreased and supply remained unchanged. B) supply increased and demand remained unchanged. C) demand increased and supply remained unchanged. D) supply decreased and demand remained unchanged.

Conclusions about the misallocation of resources under conditions of monopoly depend, in part, on the crucial assumption that

A) monopolies are interested in economic profits and competitive firms are not. B) the monopolization of a perfectly competitive industry does not change the cost structure of the industry. C) the economies of scale exist only in perfectly competitive industries. D) the marginal cost curve of a monopolist is different from that of a perfectly competitive firm.