-Refer to the above figure. Suppose demand is D2 and then increases to D3. Economic rent after the change is

Question

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Economic rent is the payment to the fixed factor of production over and above its opportunity cost. In the given figure, the economic rent is the area CIGO. When demand increases from D2 to D3, the equilibrium price increases from P2 to P3. As a result, the economic rent increases from area CIGO to area BJC.

-Refer to the Above Figure