Graph 7-2 -According to Graph 7-2, area C represents: A) the decrease in consumer surplus that results from a downward-sloping demand curve B) consumer surplus to new consumers who enter the market when the price falls from P₂ to P₁ C) an increase in producer surplus when the quantity sold increases from Q₂ to Q₁ D) a decrease in consumer surplus to each consumer in the market

Question

Quizplus · Accepted Answer

Area C represents the consumer surplus gained by new consumers who enter the market due to the price drop from P2 to P1.

Graph 7-2 -According to Graph 7-2, Area C Represents