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

question 35

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 plus consumer surplus is maximized and is illustrated by the area

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

---

Definitions:

Correspondent Inference

A theory suggesting that people infer the motives and dispositions of others from observable behaviors, especially if the behaviors are unexpected.

Causal Inference

The process of determining the cause-and-effect relationship between variables, typically assessed through controlled experiments or observational studies.

Cognitive Heuristics

Shortcuts or rules of thumb that the mind uses to quickly form judgments and make decisions.

Criminal Psychology

A field of psychology that studies the motivations, intentions, and actions of individuals who commit crimes, as well as the ways in which the criminal justice system interacts with offenders.