In the Following Figure, the First Panel Shows a Market

question 17

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
-Refer to Figure 14.2. The regulation will benefit the society if:

• A)area BAJ > area 0FIQ₂.
• B)area AECJ > area IGQ₁Q₂.
• C)area IGQ₁Q₂ > area AECJ.
• D)area BAJ > BAC.
• E)area 0FIQ₂ > area BAJ.

---

Definitions:

Superior Colliculus

A structure located in the midbrain that plays a role in visual processing and eye movement control.

Lateral Geniculate Nucleus

A part of the thalamus that processes visual information from the retina before it reaches the cortex.

Parietal Cortex

A part of the parietal lobe involved in processing sensory information relating to touch, spatial orientation, and navigation.

Tectopulvinar System

Projections from the retina to the superior colliculus to the pulvinar (thalamus) to the parietal and temporal visual areas.