Use the following to answer question:
Figure 3.5
-(Figure 3.5) After September 11, the demand curve for air travel shifted inward, from D₂₀₀₀ to D₂₀₀₁. In 2000 the equilibrium price and quantity were $122.22 and 148.9 million enplanements, respectively. After September 11, the equilibrium price and quantity fell to $104.82 and 123.6 million enplanements, respectively. The loss in producer surplus attributable to the decrease in demand is equal to area:

Question

Use the following to answer question:
Figure 3.5

-(Figure 3.5) After September 11, the demand curve for air travel shifted inward, from D₂₀₀₀ to D₂₀₀₁. In 2000 the equilibrium price and quantity were $122.22 and 148.9 million enplanements, respectively. After September 11, the equilibrium price and quantity fell to $104.82 and 123.6 million enplanements, respectively. The loss in producer surplus attributable to the decrease in demand is equal to area:

Quizplus · Accepted Answer

The loss in producer surplus due to a decrease in demand is represented by the area between the original and new demand curves, above the new price level, which is area A + B.

Use the Following to Answer Question