If the reserve requirement is 20 percent and a new deposit of $10,000 in cash is made by a customer to their checking account, by how much are excess reserves increased?

Answer the following statement(s) true (T) or false (F)

1. Step 2 of the three-step method for monopolistic competition involves finding total cost. 2. If total revenue is greater than total costs at q*, the firm is generating total economic profits. 3. When there are economic losses, firms often enter the market. 4. If many firms producing similar products enter the market, the demand curve for existing firms producing this type of product will become less elastic. 5. If many sellers producing similar products leave the market, the demand curve for existing firms producing this type of product will shift to the right.

Price elasticity of demand tends to be low for goods with few close substitutes.

a. true b. false