Suppose Marquette Bank and Trust has $10 million in total deposits and the required reserve ratio is 7%. How many dollars must the bank keep in its vaults or on deposit at a Federal Reserve Bank?

If a linear supply curve has a zero intercept, the elasticity of supply is always unitary

What will be an ideal response?

Economists use elasticity as a tool to measure

a. the relationship between people's attitudes and their income b. the relationship between people's willingness to supply a good and their willingness to demand that good c. people's sensitivity to changes in price or income d. the effect of changes in supply on people's willingness to demand goods e. the effect of changes in supply on the government's ability to tax