If a small percentage decrease in the price of chocolate causes a larger percentage decrease in the quantity supplied, the

Ceteris paribus, if the Fed reduces the reserve requirement, then:

A. Total reserves increase. B. Total deposits decrease. C. The lending capacity of the banking system increases. D. The money multiplier decreases.

The law of demand says that as the price of a good rises,

a. buyers recognize that price may be even higher in the future, and so they buy now b. buyers purchase less in hopes that the price will fall in the future c. buyers purchase less, in part because their real income has fallen d. buyers purchase more, in part because the price of a substitute has risen e. buyers purchase more, in part because it has higher status at a higher price