The money supply is 1,500 of which 500 is currency held by the public. Bank reserves are 200. The existing reserve/deposit ratio equals:

Last year, 1,000 cases of bottled water were sold at $5; this year, 1,200 cases were sold at $7 . These data could be explained by the

a. supply and demand curves shifting to the right. b. supply and demand curves shifting to the left. c. supply curve shifting to the left, with no change in demand. d. demand curve shifting to the right, with no change in supply.

Refer to the diagram. If price falls from P 1 to P 2 , total revenue will become area(s):

A. B + D.
B. C + D.
C. A + C.
D. C.