Figure 7-15
-Refer to Figure 7-15.When the price rises from P1 to P2,which area represents the increase in producer surplus to existing producers?
A)A
B)A+B
C)A+B+C

Question

Figure 7-15 
-Refer to Figure 7-15.When the price rises from P1 to P2,which area represents the increase in producer surplus to existing producers?
A)A 
B)A+B 
C)A+B+C

Quizplus · Accepted Answer

The increase in producer surplus to existing producers is represented by area A, as it reflects the additional revenue gained by producers who were already selling at the lower price P1 when the price rises to P2.

Figure 7-15 -Refer to Figure 7-15.When the Price Rises from P1 to from P1