Graph 7-1
-Refer to Graph 7-1.What area represents total surplus in the market when the price is P₁?

Name: Graph 7-1 -Refer to Graph 7-1.What area represents total surplus in the market when the price is P₁?
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Question

Graph 7-1 
-Refer to Graph 7-1.What area represents total surplus in the market when the price is P₁?

Quizplus · Accepted Answer

The area representing total surplus in the market when the price is P₁ is the sum of consumer surplus (area B) and producer surplus (area C). Therefore, the correct choice is B, as it represents the total surplus for the given price.

Graph 7-1 -Refer to Graph 7-1.What Area Represents Total Surplus in the Surplus