Figure 7-12

-Refer to Figure 7-12.When the price rises from P1 to P2,what area represents the increase in producer surplus?
A) A
B) A+B
C) A+B+C
D) G

Question

Figure 7-12
 
-Refer to Figure 7-12.When the price rises from P1 to P2,what area represents the increase in producer surplus?
A) A 
B) A+B 
C) A+B+C 
D) G

Quizplus · Accepted Answer

The increase in producer surplus is represented by the area between the supply curve and the new equilibrium price (P2) above the original equilibrium (P1). This area is equal to A+B. Therefore, the correct answer is B.

Figure 7-12 -Refer to Figure 7-12.When the Price Rises from P1 to Rises