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Figure: Determining Surplus and Loss
-(Figure: Determining Surplus and Loss)Consider the graph.If the price is raised from $8 to $12:

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Use the following to answer questions 
Figure: Determining Surplus and Loss 
-(Figure: Determining Surplus and Loss)Consider the graph.If the price is raised from $8 to $12:

Quizplus · Accepted Answer

When the price is raised from $8 to $12, the quantity demanded decreases from 12 to 8, while the quantity supplied increases from 4 to 8. This creates a new equilibrium point at $12 and 8 units traded. At this new equilibrium, the area of consumer surplus decreases from A+B+C to just A, while the area of producer surplus increases from C+D+E to C+D+F. The transfer of surplus from consumers to producers is equal to the increase in producer surplus (F-E) which is $80. Therefore, the correct answer is B - $80 is transferred from consumers to producers.

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