In november 2008 the fed began to pay interest on reserves held at the bank. what effect would you expect this to have on excess reserves? did banks generally favor or oppose this action? would central banks generally favor or oppose this action? what effect did this probably have on interest rates paid by banks?

Anewspaper story on the effect of higher milk prices on the market for ice cream contained the following: "as a result [of the increase in milk prices], retail prices for ice cream are up 4 percent from last year. . and ice cream consumption is down 3 percent." source: john curran, "ice cream, they scream: milk fat costs drive up ice cream prices," associated press, july 23, 2001. based on the information given, what is the price elasticity of demand for ice cream?