The level of U.S. exports depends ________ the level of income in other countries.

If the marginal value of a third soda is $1.50 to Jackie, then

a. Jackie would be willing to pay no more than $4.50 for three sodas. b. Jackie places a total value of less than $4.50 on three sodas. c. Jackie would pay no more than $1.50 for an additional soda when she has already consumed 2 sodas. d. Jackie would pay no more than $1.50 for any soda.

The accompany diagram shows the market for gasoline, in which there are 1,000 consumers. Gasoline can be produced at a constant marginal cost of $2 per gallon. When the market is in equilibrium, the average consumer uses 15 gallons of gasoline per week.

Suppose a war breaks out, temporarily limiting the amount of gasoline available for civilian use to 10,000 gallons per week. In the interest of fairness, the government allocates 10 gallons per week to each consumer, taxes each consumer $20 per week, and forbids barter in gasoline. Will the shaded area in the diagram accurately measure the loss in consumers' surplus? Why or why not?