Refer to the figure above. When the supply curve of flash drives is S2 and the demand curve of flash drives is D, what is the surplus in the market when the price is $7?

Under which circumstance is the Fed most likely to carry out a defensive open market operation?

A) to prevent an increase in inflation B) if a snowstorm results in a delay in check clearing, resulting in an increase in the Federal Reserve float C) to defend the value of the U.S. dollar on the foreign exchange market D) to prevent the negative impact of a demand shock

Which of the following would be the best example of an oligopolistic industry?

A) agriculture B) large aircraft manufacturing C) the local water supply D) retail convenience stores