A local Krispy Kreme doughnut shop reduced the price of its doughnuts from $4 per dozen to $3.50 per dozen, and as a result, the daily sales increased from 300 to 400 dozen. This indicates that the price elasticity of demand for the doughnuts was:

Assume the price of product Y (the quantity of which is plotted on the vertical axis) is initially $15 and the price of X (the quantity of which is plotted on the horizontal axis) is initially $3. Assume money income is initially $60. If the prices of Y and X now increase to $30 and $6 respectively and money income increases to $120, then the budget line will:

A) shift rightward and become steeper. C) shift rightward, but its slope will not change. B) shift rightward and become flatter. D) be unchanged.

Which of the following are all assets to a commercial bank?

A. Demand deposits, stock shares, and reserves. B. Vault cash, property, and reserves. C. Vault cash, property, and stock shares. D. Vault cash, stock shares, and demand deposits.