Figure 7-6

-Refer to Figure 7-6.When the price falls from P₂ to P₁,producer surplus
A)decreases by an amount equal to C.
B)decreases by an amount equal to A + B.
C)decreases by an amount equal to A + C.
D)increases by an amount equal to A + B.

Question

Figure 7-6
 
-Refer to Figure 7-6.When the price falls from P₂ to P₁,producer surplus
A)decreases by an amount equal to C. 
B)decreases by an amount equal to A + B. 
C)decreases by an amount equal to A + C. 
D)increases by an amount equal to A + B.

Quizplus · Accepted Answer

The Answer of Figure 7-6
 
-Refer to Figure 7-6.When the price falls from P₂ to P₁,producer surplus
A)decreases by an amount equal to C. 
B)decreases by an amount equal to A + B. 
C)decreases by an amount equal to A + C. 
D)increases by an amount equal to A + B.

Figure 7-6 -Refer to Figure 7-6.When the Price Falls from P₂ to Falls