Figure 7-17

-Refer to Figure 7-17.When the price is P1,area B represents
A) total surplus.
B) producer surplus.
C) consumer surplus.
D) profits.

Name: Figure 7-17 -Refer to Figure 7-17.When the price is P1,area B represents A) total surplus. B) producer surplus. C) consumer surplus. D) profits.
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Question

Figure 7-17
 
-Refer to Figure 7-17.When the price is P1,area B represents
A) total surplus. 
B) producer surplus. 
C) consumer surplus. 
D) profits.

Quizplus · Accepted Answer

Area B represents consumer surplus, which is the difference between the maximum price consumers are willing to pay and the actual price they pay. Therefore, the best choice is C.

Figure 7-17 -Refer to Figure 7-17.When the Price Is P1,area B Represents