Graph 7-2 -According to Graph 7-2, Area C Represents

question 89

Multiple Choice

Graph 7-2

-According to Graph 7-2, area C represents:

• A) the decrease in consumer surplus that results from a downward-sloping demand curve
• B) consumer surplus to new consumers who enter the market when the price falls from P₂ to P₁
• C) an increase in producer surplus when the quantity sold increases from Q₂ to Q₁
• D) a decrease in consumer surplus to each consumer in the market

---

Definitions:

Eyewitness

Refers to an individual who personally sees or experiences an event, and can therefore report their observations.

Smashed

In psychological experiments, particularly those related to memory and suggestion, "smashed" is often used to describe the influence of specific wording on participants' memory recall, such as their estimation of speed in a car accident.