-Refer to Exhibit 34-2

question 80

Multiple Choice

-Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,the world price is P_W.At this price,consumers' surplus equals the area of

• A) P_W DE.
• B) P_W AB.
• C) P_W AC.
• D) P_W P_NBD.

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Definitions:

Horizontal

Describes a direction parallel to the ground or the horizon; at 90 degrees to the vertical.

Groundwater

Water present beneath the Earth's surface in soil pore spaces and in the fractures of rock formations.

Fractures

Breaks in rock or bone, often as a result of stress exceeding the material's internal strength.

Granite

A coarse-grained igneous rock composed mainly of quartz, feldspar, and mica, often used in construction.