In the Following Figure, the First Panel Shows a Market

question 46

Multiple Choice

In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
In the figure,
D: Demand curve for automobiles
S₁: Supply curve of automobiles prior to regulation
S₂: Supply curve of automobiles after regulation
FG: Clean up cost per unit
-Graphically, consumer surplus is the area:

• A)above the demand curve.
• B)below the supply curve.
• C)under the demand curve and the supply curve.
• D)above the market supply curve and under the equilibrium price.
• E)under the market demand curve and above the equilibrium price.

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