Figure 7-4

-Refer to Figure 7-4.What will NOT occur when the price falls from P₂ to P₁
A)The sellers who still sell the good are worse off because they now receive less.
B)The total quantity sold in the market increases.
C)The total cost of what is now sold by sellers is actually higher.
D)Producer surplus would fall by area A + B.

Question

Figure 7-4
 
-Refer to Figure 7-4.What will NOT occur when the price falls from P₂ to P₁
A)The sellers who still sell the good are worse off because they now receive less. 
B)The total quantity sold in the market increases. 
C)The total cost of what is now sold by sellers is actually higher. 
D)Producer surplus would fall by area A + B.

Quizplus · Accepted Answer

When the price falls from P₂ to P₁, the total quantity sold in the market does not necessarily increase; it depends on the demand and supply elasticity.

Figure 7-4 -Refer to Figure 7-4.What Will NOT Occur When the Price