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-(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.

Question

Use the following to answer question:

-(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.

Quizplus · Accepted Answer

The area B and C represent the total change in consumer surplus when the price falls from P₁ to P₂. 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.

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