A change in the price of one good, such as staples, may affect the quantity demanded of another good, such as rubber bands

Refer to the above figure. Suppose the economy is in equilibrium at point A. If rational expectations exist, an increase in aggregate demand caused by an anticipated increase in the money supply will cause the economy to

A) stay at point A. B) move to point B. C) move to point C. D) move to point D.

As the price of cell phones fell during the last decade, consumers' total expenditures on cell phones increased. If the demand curve for cell phones did not shift, this fact means that the demand for cell phones

A) must have shifted leftward. B) must be upward sloping. C) is elastic. D) is inelastic.