FIGURE 5- 5 -Refer to Figure 5- 5. at the Market- Clearing Price

Multiple Choice

FIGURE 5- 5
-Refer to Figure 5- 5. At the market- clearing price and quantity of $30 per hour and 4000 hours of gardening services purchased, the economic surplus is

A) the sum of the areas below the demand curve, up to 400 hours - i.e., areas 1, 2, 3, 4, 5, 6, 7, 8.
B) the sum of the areas below the demand curve - i.e., areas 1, 2, 3, 4, 5, 6, 7, 8, 9.
C) the sum of the areas below the demand curve, but above the market- clearing price of $30 - i.e., areas 1, 2, 6.
D) the sum of the areas above the supply curve, but below the market- clearing price of $30 - i.e., areas 3, 4, 7.
E) the sum of the areas above the supply curve and below the demand curve - i.e., areas 1, 2, 3, 4, 6, 7.