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Figure: Gain in Consumer Surplus
-(Figure: Gain in Consumer Surplus) Look at the figure Gain in Consumer Surplus.Identify the area(s) that represent the total change in consumer surplus when the price falls from P₁ to P₂.

Question

Use the following to answer questions :
Figure: Gain in Consumer Surplus

-(Figure: Gain in Consumer Surplus) Look at the figure Gain in Consumer Surplus.Identify the area(s) that represent the total change in consumer surplus when the price falls from P₁ to P₂.

Quizplus · Accepted Answer

The area B represents the initial consumer surplus at the original price of P₁, and the addition of area C represents the increase in consumer surplus as a result of the price decrease to P₂. Therefore, the total change in consumer surplus is represented by areas B and C, which are both included in choice B.

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