-In the Above Figure, If the Market Quantity Is Restricted

question 86

Multiple Choice

-In the above figure, if the market quantity is restricted to 500,000 and the price is allowed to rise to set the quantity demanded equal to the quantity supplied, then the producer surplus is equal to

• A) area D + area F.
• B) area A + area B.
• C) area A + area B + area C.
• D) area B + area D + area F.
• E) area C + area E.

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Definitions:

Equilibrium Price

The market price at which the quantity of a good supplied equals the quantity demanded.

Demand And Supply Diagram

A graphical representation used in economics to show the relationship between the price of a good and the quantity demanded and supplied at that price.

Health Care Consumed

The total amount of health services and goods utilized by individuals or a population.

Copayment

The percentage of (say, health care) costs that an insured individual pays while the insurer pays the remainder.