Figure 7-10
-Refer to Figure 7-10.Which area represents the increase in producer surplus when the price rises from P1 to P2 due to new producers entering the market?
A)BCG
B)ACH
C)DGH
D)AHGB

Question

Figure 7-10 
-Refer to Figure 7-10.Which area represents the increase in producer surplus when the price rises from P1 to P2 due to new producers entering the market?
A)BCG 
B)ACH 
C)DGH 
D)AHGB

Quizplus · Accepted Answer

The area DGH represents the increase in producer surplus due to new producers entering the market when the price rises from P1 to P2. This area is above the original supply curve and below the new price level P2.

Figure 7-10 -Refer to Figure 7-10.Which Area Represents the Increase in Producer