FIGURE 5-6
-Refer to Figure 5-6. The market for good X is in equilibrium at P 0 and Q0. Economic surplus is represented by
A) areas 1 and 5.
B) areas 2, 3, 4, 6, 7, 8.
C) areas 1, 2, 3, 5, 6.
D) areas 1, 2, 3, 4, 5, 6, 7, 8.
E) areas 2, 3, 4, 6, 7, 8, 9.

Question

FIGURE 5-6
-Refer to Figure 5-6. The market for good X is in equilibrium at P 0 and Q0. Economic surplus is represented by
A) areas 1 and 5. 
B) areas 2, 3, 4, 6, 7, 8. 
C) areas 1, 2, 3, 5, 6. 
D) areas 1, 2, 3, 4, 5, 6, 7, 8. 
E) areas 2, 3, 4, 6, 7, 8, 9.

Quizplus · Accepted Answer

Economic surplus includes both consumer surplus and producer surplus. In this diagram, consumer surplus is represented by areas 1, 2, and 3, while producer surplus is represented by areas 5 and 6. Therefore, economic surplus is the combination of these areas, which are 1, 2, 3, 5, and 6. Choice C includes all of these areas.

FIGURE 5-6 -Refer to Figure 5-6. the Market for Good X Is