Figure 7-15
-Refer to Figure 7-15.Area B represents
A)the combined profits of all producers when the price is P2.
B)the increase in producer surplus to all producers as the result of an increase in the price from P1 to P2.
C)producer surplus to new producers entering the market as the result of an increase in the price from P1 to P2.
D)that portion of the increase in producer surplus that is offset by a loss in consumer surplus when the price increases from P1 to P2.

Question

Figure 7-15 
-Refer to Figure 7-15.Area B represents
A)the combined profits of all producers when the price is P2. 
B)the increase in producer surplus to all producers as the result of an increase in the price from P1 to P2. 
C)producer surplus to new producers entering the market as the result of an increase in the price from P1 to P2. 
D)that portion of the increase in producer surplus that is offset by a loss in consumer surplus when the price increases from P1 to P2.

Quizplus · Accepted Answer

The Answer of Figure 7-15 
-Refer to Figure 7-15.Area B represents
A)the combined profits of all producers when the price is P2. 
B)the increase in producer surplus to all producers as the result of an increase in the price from P1 to P2. 
C)producer surplus to new producers entering the market as the result of an increase in the price from P1 to P2. 
D)that portion of the increase in producer surplus that is offset by a loss in consumer surplus when the price increases from P1 to P2.

Figure 7-15 -Refer to Figure 7-15.Area B Represents