Figure 7-12

-Refer to Figure 7-12.Suppose producer surplus is larger than C but smaller than A+B+C.The price of the good must be
A) lower than P1.
B) P1.
C) between P1 and P2.
D) higher than P2.

Question

Figure 7-12
 
-Refer to Figure 7-12.Suppose producer surplus is larger than C but smaller than A+B+C.The price of the good must be
A) lower than P1. 
B) P1. 
C) between P1 and P2. 
D) higher than P2.

Quizplus · Accepted Answer

If producer surplus is between C and A+B+C, then the price that producers receive for the good must be somewhere between P1 and P2. Therefore, the correct answer is choice C.

Figure 7-12 -Refer to Figure 7-12.Suppose Producer Surplus Is Larger Than C