(Figure: Gain in Consumer Surplus) Look at the figure Gain in Consumer Surplus.Identify the area or areas that represent the total change in consumer surplus when the price falls from P₁ to P₂.

A) A and B
B) B and C
C) D and E
D) A,B,and C

Question

NORMAN LUCKYBOY KHOZA · Accepted Answer

Final Answer : B, Explanation :  The area B and C represent the total change in consumer surplus when the price falls from P 1  to P 2 . These areas show the additional consumer surplus gained due to the lower price. Area A represents the initial consumer surplus at the higher price and is not included in the total change. Area D and E represent producer surplus and are not relevant to the change in consumer surplus.

(Figure: Gain in Consumer Surplus) Look at the figure Gain in Consumer Surplus.Identify the area or areas that represent the total change in consumer surplus when the price falls from P₁ to P₂.

A) A and B
B) B and C
C) D and E
D) A,B,and C

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Learning Objectives

Learning Objectives

Related questions

(Figure: Gain in Consumer Surplus) Look at the figure Gain in Consumer Surplus.Identify the area or areas that represent the total change in consumer surplus when the price falls from P1 to P2.A) A and BB) B and CC) D and ED) A,B,and C

Definitions

Learning Objectives

Learning Objectives

Related questions

(Figure: Gain in Consumer Surplus) Look at the figure Gain in Consumer Surplus.Identify the area or areas that represent the total change in consumer surplus when the price falls from P₁ to P₂.

A) A and B
B) B and C
C) D and E
D) A,B,and C