Graph 7-1
-Refer to Graph 7-1.What area represents total surplus in the market when the price is P₁?
A)A + B
B)B + C
C)C + D
D)A + B + C + D

Question

Graph 7-1 
-Refer to Graph 7-1.What area represents total surplus in the market when the price is P₁?
A)A + B 
B)B + C 
C)C + D 
D)A + B + C + D

Quizplus · Accepted Answer

The area representing total surplus in the market when the price is P₁ is the sum of consumer surplus (area B) and producer surplus (area C). Therefore, the correct choice is B, as it represents the total surplus for the given price.

Graph 7-1 -Refer to Graph 7-1.What Area Represents Total Surplus in the Surplus