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 Q₃,and the price was still equal to its free-market level,the loss in producer surplus relative to the competitive equilibrium would be illustrated by area

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