Consider the market for nonalcoholic beers from the previous question. Which of the following is the Bertrand reaction function for Cudweiser?

What would cause a bank run?

A) Depositors feel that the bank does not have sufficient assets to cover their deposits. B) Bank managers choose to hold more excess reserves. C) Depositors feel that they are earning too low of a return on their deposits. D) Borrowers feel that they are being charged too high of an interest rate on their loans.

If the income elasticity of food is 0.72, then food is

A) a necessity and a normal good. B) a normal good. C) a necessity. D) an inferior good.