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The Diagram Below Shows the Demand and Supply Curves in a Perfectly

Question 18

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The diagram below shows the demand and supply curves in a perfectly competitive market. The diagram below shows the demand and supply curves in a perfectly competitive market. FIGURE 12-5 -Refer to Figure 12-5.In the free-market equilibrium,producer plus consumer surplus is maximized and is illustrated by the area A) P<sub>3</sub>P<sub>2</sub>E. B) P<sub>1</sub>P<sub>2</sub>E. C) P<sub>1</sub>P<sub>3</sub>E. D) 1 + 2. E) 1 + 2 + 3 + 4. FIGURE 12-5
-Refer to Figure 12-5.In the free-market equilibrium,producer plus consumer surplus is maximized and is illustrated by the area


A) P3P2E.
B) P1P2E.
C) P1P3E.
D) 1 + 2.
E) 1 + 2 + 3 + 4.

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