Figure 3-17. -Refer to Figure 3-16. When the Price Falls from P₂

Multiple Choice

Figure 3-17.
-Refer to Figure 3-16. When the price falls from P₂ to P₁, producer surplus

A) decreases by an amount equal to C.
B) decreases by an amount equal to A + B.
C) decreases by an amount equal to A + C.
D) increases by an amount equal to A + B.