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The graph below shows the supply and demand curves in the market for credit card borrowing.

What is the equilibrium interest rate?

Suppose that individuals shift their intertemporal consumption-savings decisions and decide to buy more things now. Which graph most accurately shows how this would affect demand and supply for borrowing money with credit cards? Note that the new curve is shown in gray.





 

Suppose that consumers have a major change in their consumption/savings preferences. As a result of a serious recession they decide to consume less and save more. Which graph most accurately shows how this would affect demand and supply for borrowing money with credit cards? Note that the new curves are shown in gray.