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

question 6

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 Q₃, and the price was still equal to itsfree-market level, the loss in producer surplus relative to the competitive equilibrium would be illustrated by area

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

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