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Figure 4-6 Figure 4-6 Shows the Market for Granola

Question 392

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Figure 4-6 Figure 4-6   Figure 4-6 shows the market for granola. The market is initially in equilibrium at a price of P<sub>1</sub> and a quantity of Q<sub>1</sub>. Now suppose producers decide to cut output to Q<sub>2 </sub>in order to raise the price to P<sub>2.</sub> -Refer to Figure 4-6. What area represents producer surplus at the equilibrium price of P<sub>1</sub>? A)  A + B + D B)  D + E C)  D + E + G + H D)  A + B + C + D + E Figure 4-6 shows the market for granola. The market is initially in equilibrium at a price of P1 and a quantity of Q1. Now suppose producers decide to cut output to Q2 in order to raise the price to P2.
-Refer to Figure 4-6. What area represents producer surplus at the equilibrium price of P1?


A) A + B + D
B) D + E
C) D + E + G + H
D) A + B + C + D + E

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