The Diagram Below Shows the Demand and Supply Curves in a Perfectly

question 52

Multiple Choice

The diagram below shows the demand and supply curves in a perfectly competitive market.
FIGURE 12-5
-Refer to Figure 12-5. In the free-market equilibrium, producer surplus is shown by the area

• A) P3P2E.
• B) P1P2E.
• C) P1P3E.
• D) 1 +2.
• E) 1 + 2 + 3 + 4.