In the Following Figure, the First Panel Shows a Market

question 1

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 12.2 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 12.2.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.

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Definitions:

Visualization

The process of forming a mental image of something, often used as a technique in planning or creative endeavors.

Imagining

The process of creating mental images or scenarios that are not currently present to the senses, used in creativity, problem-solving, and planning.

Disinhibition

The reduction of inhibition, resulting in spontaneous behavior without consideration for societal norms or potential risks.

Inhibition

The process of restraining or suppressing a behavior, emotion, or impulse.