Use the following graph to answer the following questions.

-In the figure,which combination of areas represents the social welfare?
A) A + D
B) B + C
C) D + E
D) A + B
E) C + D

Question

Use the following graph to answer the following questions.
 
-In the figure,which combination of areas represents the social welfare?
A) A + D 
B) B + C 
C) D + E 
D) A + B 
E) C + D

Quizplus · Accepted Answer

The combination of areas B (consumer surplus) and F1F1F1S1+F1F1F10 (producer surplus) represents the social welfare. This is because social welfare is the total benefit to society, which is the sum of consumer and producer surplus. Therefore, B F1F1F1S1+F1F1F10 is the best choice.

Use the Following Graph to Answer the Following Questions