Figure 7-2

-Refer to Figure 7-2.When the price falls from P₁ to P₂,which area represents the increase in consumer surplus to new buyers entering the market
A)ABD
B)ACF
C)BCED
D)DEF

Question

Figure 7-2
 
-Refer to Figure 7-2.When the price falls from P₁ to P₂,which area represents the increase in consumer surplus to new buyers entering the market
A)ABD 
B)ACF 
C)BCED 
D)DEF

Quizplus · Accepted Answer

When the price falls from P₁ to P₂, new buyers enter the market, and the increase in consumer surplus for these new buyers is represented by the area between the new price (P₂) and the demand curve, which is area DEF.

Figure 7-2 -Refer to Figure 7-2.When the Price Falls from P₁ to Falls