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

question 42

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.

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