Use the figure below to answer the following questions. Figure 5.2.3
-Refer to Figure 5.2.3.If the price falls from P₁ to P₀,what area on the graph indicates the change in consumer surplus?

Question

Use the figure below to answer the following questions.

Figure 5.2.3
-Refer to Figure 5.2.3.If the price falls from P₁ to P₀,what area on the graph indicates the change in consumer surplus?

Quizplus · Accepted Answer

The change in consumer surplus is represented by the area B plus C. Area A represents the reduction in consumer surplus due to the higher price and area D represents the gain in producer surplus. However, since the question specifically asks for the change in consumer surplus, we only need to consider areas B and C.

Use the Figure Below to Answer the Following Questions