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 Figure 4.6. If price goes from equilibrium to P1, producer surplus changes by the areaA)  E - C.B)  C + EC)  E + F.D)  B - F.

khala phillips · Accepted Answer

Final Answer : C, Explanation :  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 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.

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