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

question 18

Multiple Choice

The diagram below shows the demand and supply curves in a perfectly competitive market.
FIGURE 12-5
-Refer to Figure 12-5. If output in this market were Q1, the total loss in economic surplus relative to the competitive equilibrium would be illustrated by area

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

---

Definitions:

Goal

A desired result or achievement that an individual or organization aims to work toward through planned actions.

Positive Change

A term describing an improvement or a beneficial transformation in a situation, individual's life, or organization.

Negative Change

A shift in circumstances or conditions that leads to a deterioration or adverse outcomes compared to previous states.

Life Changes

Any noticeable alterations in one’s living circumstances that require readjustment.