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 Q₃, and the price were still P2, the loss in consumer surplus relative to the competitive equilibrium would be illustrated by area
A) 3 + 4.
B) 1.
C) 3.
D) 4.
E) 2.

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 Q₃, and the price were still P2, the loss in consumer surplus relative to the competitive equilibrium would be illustrated by area
A) 3 + 4. 
B) 1. 
C) 3. 
D) 4. 
E) 2.

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 Q₃, and the price were still P2, the loss in consumer surplus relative to the competitive equilibrium would be illustrated by area
A) 3 + 4. 
B) 1. 
C) 3. 
D) 4. 
E) 2.

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