The diagram below shows the demand and supply curves in a perfectly competitive market.
FIGURE 12- 5
-Refer to Figure 12- 5.If output in this market were Q1,but the price was still at its free- market level,the loss in consumer surplus relative to the competitive equilibrium would be illustrated by area
A)P1P3E.
B)2.
C)P3P2E.
D)1 + 2.
E)1.

Question

The diagram below shows the demand and supply curves in a perfectly competitive market.
  FIGURE 12- 5
-Refer to Figure 12- 5.If output in this market were Q1,but the price was still at its free- market level,the loss in consumer surplus relative to the competitive equilibrium would be illustrated by area
A)P1P3E. 
B)2. 
C)P3P2E. 
D)1 + 2. 
E)1.

Quizplus · Accepted Answer

The Answer of The diagram below shows the demand and supply curves in a perfectly competitive market.
  FIGURE 12- 5
-Refer to Figure 12- 5.If output in this market were Q1,but the price was still at its free- market level,the loss in consumer surplus relative to the competitive equilibrium would be illustrated by area
A)P1P3E. 
B)2. 
C)P3P2E. 
D)1 + 2. 
E)1.

The Diagram Below Shows the Demand and Supply Curves in a Perfectly