Figure: Demand 2 In the figure where S₁ is the supply of drugs with no prohibition and S₂ is the supply of drugs with prohibition, the area that represents total revenue with drug prohibition is ______, and the area that represents total revenue with no prohibition is ______. A) A + C + D; B + D B) C + D; A + C C) A + C; C + D D) B + D; A + C

Question

Quizplus · Accepted Answer

The area that represents total revenue with drug prohibition is A + C, which is represented as the shaded area under the demand curve (D) and above the supply curve with prohibition (S₂). The area that represents total revenue with no prohibition is C + D, which is represented as the shaded area under the demand curve (D) and above the supply curve with no prohibition (S₁).

Figure: Demand 2 in the Figure Where S1 Is

Figure: Demand 2 in the Figure Where S₁ Is