Elasticity of demand equals the ratio of the percentage change in the price of a good to the percentage change in the quantity demanded.

Suppose a market begins in equilibrium. If supply increases, then at the original equilibrium price the quantity demanded is

A) is less than the quantity supplied and a surplus results. B) is less than the quantity supplied and a shortage results. C) exceeds the quantity supplied and a surplus results. D) exceeds the quantity supplied and a shortage results.

When the Fed buys U.S. government securities from a member bank, that bank's excess reserves, required reserves, and total reserves all increase

a. True b. False Indicate whether the statement is true or false