Use the following to answer questions:
Figure: Change in the Total Surplus
-(Figure: Change in Total Surplus) Look at the figure Change in Total Surplus. Which of the following areas represent the change in total surplus when the price falls from P₂ to P₃?

Question

Use the following to answer questions:
Figure: Change in the Total Surplus

-(Figure: Change in Total Surplus) Look at the figure Change in Total Surplus. Which of the following areas represent the change in total surplus when the price falls from P₂ to P₃?

Quizplus · Accepted Answer

The change in total surplus is represented by the area below the demand curve and above the supply curve. When the price falls from P2 to P3, the change in total surplus is represented by the area C and E.

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