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. Consumer surplus is area [A + B + E] if price is
A) P1.
B) P2.
C) P3.
D) above P3.

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. Consumer surplus is area [A + B + E] if price is
A) P1. 
B) P2. 
C) P3. 
D) above P3.

Quizplus · Accepted Answer

Consumer surplus is the area between the demand curve and the price level, up to the quantity demanded. At price P1, which is lower than P2 and P3, the consumer surplus is maximized, encompassing areas A, B, and E.

Refer to the Information Provided in Figure 4