Answered: Demand A B D QUANTITY Refer to Figure…

Demand A B D QUANTITY Refer to Figure 7-1. When the price is P 2, consumer surplus is O a. A+B+D. O b. A+B. O. A. d.А-B-C. PRICE

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

Figure 7-1
Demand
A
B
P,
D
Q,
QUANTITY
Refer to Figure 7-1. When the price is P 2, consumer surplus is
a. A+B+D.
b. A+B.
O.A.
d. A+B+C.
PRICE

Expert Solution

Step 1

Here demand is downward sloping curve which means that it price rise quantity will decline and vice versa.

If price is P1 then quantity is Q1 and if price rise to P2 then quantity decreases to Q2

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