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3. After World War Il, returning veterans paid a lower price for college tuition than did civilians. If instead, returning veterans pay the same tuition as civilians, how would the price of professional services, the quantity of professional services, consumer surplus, and producer surplus change? If instead, returning veterans pay the same tuition as civilians, then the price of professional services and the quantity of professional services () A. falls; increases; (®) B. rises; decreases () C. rises; increases () D. falls; decreases; () E. does not change; does not change Consumer surplus and producer surplus () A. increases; decreases () B. increases; increases () C. decreases; increases ®) D. decreases; decreases () E. does not change; does not change 4. In California, farmers pay a lower price for water than do city residents. If all water in California is sold for the market equilibrium price, would the allocation of water be more efficient? Why or why not? If farmers paid the same price for water as city residents, this new method of allocating water would be efficient because (®) A. more; market price is the new allocation method and farmers would now pay a price at which marginal cost equals marginal benefit. The quantity of water used by farmers will decrease toward the efficient quantity. () B. less; farmers' costs will increase and they will produce fewer agricultural products () C. less: market price is the new allocation method and farmers would store as much water as possible to help them in times of drought. The quantity of water used by farmers will increase and farm use of water will become even more inefficient. () D. more; first-come first-served is the new allocation method and farmers would have to compete with city dwellers for water. The quantity of water farmers use will depend on where they are "in the water line." () E. more; a lottery is the new allocation method and farmers would have to compete with city dwellers for water. The quantity of water used depends on who wins the lottery 5. When a market price allocates a scarce resource, the people who get the resource. () A. line up first () B. pick the winning number () C. uphold the law (®) D. are willing and able to pay that price