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

Multiple Choice

The diagram below shows the demand and supply curves in a perfectly competitive market. FIGURE 12-5
-Refer to Figure 12-5.If output in this market were Q₁,and the price were still equal to its free-market level,the loss in producer surplus relative to the competitive equilibrium would be illustrated by area

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