Figure 7-3

-Refer to Figure 7-3.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) ACG
C) BCDF
D) DFG

Question

Figure 7-3
 
-Refer to Figure 7-3.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) ACG 
C) BCDF 
D) DFG

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 DFG.

Figure 7-3 -Refer to Figure 7-3.When the Price Falls from P1 to Falls