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    Exam 4: Using Supply and Demand
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    Figure 4-E -Refer to Figure 4-E.When the Price Falls from P<sub>2</sub> to from P<sub>2</sub>
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Figure 4-E -Refer to Figure 4-E.When the Price Falls from P2 to from P2

Question 177

Question 177

Multiple Choice

Figure 4-E Figure 4-E   -Refer to Figure 4-E.When the price falls from P<sub>2</sub> to P<sub>1</sub>, producer surplus: A) increases by area B B) increases by area A + B C) decreases by area A D) decreases by area A + B
-Refer to Figure 4-E.When the price falls from P2 to P1, producer surplus:


A) increases by area B
B) increases by area A + B
C) decreases by area A
D) decreases by area A + B

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