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question 27

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Use the following to answer question: Use the following to answer question:   -(Figure: Change in Total Surplus) Look at the figure Change in Total Surplus.Which areas represent the change in total surplus when the price falls from P<sub>1</sub> to P<sub>2</sub>? A) A,B,and C B) B and C C) B,C,D,and E D) C and E
-(Figure: Change in Total Surplus) Look at the figure Change in Total Surplus.Which areas represent the change in total surplus when the price falls from P1 to P2?


Definitions:

Security Market Line

A line graph that represents the relationship between risk (beta) and the expected return of the market and various securities.

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