Suppose a monopolist's demand curve lies below its average variable cost curve. The firm will:

Decisions by depositors to increase their holdings of ________, or of banks to hold ________ will result in a smaller expansion of deposits than the simple model predicts

A) deposits; required reserves B) deposits; excess reserves C) currency; required reserves D) currency; excess reserves

The above figure shows the market demand curve for telecommunication while driving one's car (time spent on the car phone). The current price is 35¢ per minute. If the price were to increase by ten cents per minute, consumer surplus would

A) fall to $820. B) fall by $84. C) fall by $58. D) fall to $369.