The above figure shows the domestic market for tomatoes. Suppose this market is isolated from global competition and there is a support price set at $16. In this figure, what area equals the producer surplus?
A) area A + area B + area C
B) area A + area F
C) area B + area C + area D + area F
D) area C + area D + area E + area G
E) area F
C
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A consumer's optimal choice occurs when the
a. consumer's valuation of the two goods equals the market's valuation of the two goods. b. consumer minimizes her expenditures. c. consumer attains the highest indifference curve. d. consumer's valuation of the two goods exceeds the market's valuation of the two goods.
If Cruise the World advertises a 30 day low-price guarantee that will refund any of its customers the difference between the price they paid for a cruise and a lower price offered by Cruise the World for the same cruise, this is an example of ________.
A) a meet-the-competition clause B) a most-favored-customer clause C) price visibility D) a meet-or-release clause