In Figure 32.1, at the market price-quantity combination, the consumer surplus is 
A. HPfloorBG.
B. APfloorB.
C. P*AC.
D. HP*C.
Answer: C
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A graph measures y on the vertical axis and x on the horizontal. The curve on the graph is a horizontal line. From this fact we know that
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If designed correctly, tournaments
A. always reward a single winner. B. reduce the applicant pool to just those workers with the best degrees. C. discourage competition. D. reward players according to their ranked productivity. E. elicit equal effort from all workers.
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A) reach an optimum on a higher indifference curve. B) reach an optimum on a lower indifference curve. C) reach an optimum on the same indifference curve. D) her level of satisfaction may go up or down.
If the market price of coffee is $3.00 per pound but the government will not allow coffee growers to charge more than $2.00 per pound of coffee, which of the following will happen?
A. The market will be in equilibrium at a price of $2.00. B. There will be a shortage of coffee. C. Demand must eventually decrease so that the market will come into equilibrium at a price of $2.50. D. Supply must eventually increase so that the market will come into equilibrium at a price of $2.50.