The Federal Open Market Committee oversees the money supply through the purchase and sale of government securities

Securities markets perform a valuable economic function because they provide

a. an opportunity for investors to make money in a short time. b. the principal indicator of the performance of the U.S. economy. c. an easy way to transfer corporate securities, thereby reducing risk to investors. d. assurance that stock purchasers can get back the purchase price of their stock.

Refer to the above figure. Suppose that Cheerios and Apple Jacks are substitutes. Which diagram shows the effect on the demand for Cheerios when the price of Apple Jacks cereal has decreased?

A. A B. B C. neither graph D. both graphs