Figure 3-15

-Refer to Figure 3-15.Which area represents the increase in producer surplus when the price rises from P₁ to P₂ due to new producers entering the market?

Question

Figure 3-15
 
-Refer to Figure 3-15.Which area represents the increase in producer surplus when the price rises from P₁ to P₂ due to new producers entering the market?

Quizplus · Accepted Answer

Area DEF represents the increase in producer surplus due to new producers entering the market when the price rises from P₁ to P₂. This area is above the original supply curve and below the new price level, indicating the surplus gained by new producers.

Figure 3-15 -Refer to Figure 3-15.Which Area Represents the Increase in Producer