Exhibit 7-11
-Refer to Exhibit 7-11. If area d is larger than area ____, the consumer is better off from the price ceiling.
A)a
B)c + e
C)c
D)a + b + d

Question

​Exhibit 7-11 
-Refer to Exhibit 7-11. If area d is larger than area ____, the consumer is better off from the price ceiling.
A)​a 
B)​c + e 
C)​c 
D)​a + b + d

Quizplus · Accepted Answer

Area c represents the quantity supplied at the price ceiling, which is greater than the quantity supplied at the market price. This means that consumers are able to purchase more goods at the price ceiling, resulting in a higher level of consumer surplus. Therefore, if area d is larger than area c, it indicates that the increase in consumer surplus from the price ceiling outweighs the decrease in producer surplus and deadweight loss, making the consumer better off overall.

​Exhibit 7-11 -Refer to Exhibit 7-11. If Area D Is Larger Than

Exhibit 7-11 -Refer to Exhibit 7-11. If Area D Is Larger Than