Figure 7-12 -Refer to Figure 7-12.When the Price Falls from P2 to Falls

Multiple Choice

Figure 7-12

-Refer to Figure 7-12.When the price falls from P2 to P1,which of the following would not be true?

A) The sellers who still sell the good are worse off because they now receive less.
B) Some sellers leave the market because they are not willing to sell the good at the lower price.
C) The total cost of what is now sold by sellers is actually higher than it was before the decrease in the price.
D) Producer surplus would fall by area A + B.