Refer to the information provided in Figure 4.6 below to answer the question(s) that follow.
Equilibrium in this market occurs at the intersection of curves S and D. Figure 4.6
-Refer to Figure 4.6. If price goes from equilibrium to P1, producer surplus changes by the area
A) E - C.
B) C + E
C) E + F.
D) B - F.

Question

Refer to the information provided in Figure 4.6 below to answer the question(s) that follow.
Equilibrium in this market occurs at the intersection of curves S and D.  Figure 4.6
-Refer to Figure 4.6. If price goes from equilibrium to P1, producer surplus changes by the area
A) E - C. 
B) C + E 
C) E + F. 
D) B - F.

Quizplus · Accepted Answer

Producer surplus is the area above the supply curve but below the price level. When price increases from the equilibrium to P1, the producer surplus increases by the areas E + F.

Refer to the Information Provided in Figure 4