Figure 7-15 -Refer to Figure 7-15.Area a Represents

question 60

Multiple Choice

Figure 7-15
-Refer to Figure 7-15.Area A represents

• A)producer surplus to new producers entering the market as the result of an increase in price from P1 to P2.
• B)the increase in consumer surplus that results from an upward-sloping supply curve.
• C)the increase in total surplus when sellers are willing and able to increase supply from Q1 to Q2.
• D)the increase in producer surplus to those producers already in the market when the price increases from P1 to P2.

---

Definitions:

Fractions

A numerical quantity that is not a whole number, representing a part of a whole.

Mixed Numbers

Numbers made up of a whole number and a fraction, indicating a quantity that falls between two consecutive integers.

Lowest Terms

refers to the simplest form of a fraction, where the numerator and denominator are as small as possible and share no common divisors other than 1.

Fractions

Mathematical expressions representing the division of one quantity by another, indicating parts of a whole.