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

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 due to new producers entering the market?
A)A 
B)B 
C)A+B

Quizplus · Accepted Answer

When the price rises from P1 to P2, the area representing the increase in producer surplus due to new producers entering the market is the area above the original supply curve and below the new price level, which is area B.

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