In the Following Figure, the First Panel Shows a Market

Multiple Choice

In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation. Figure 12.2 In the figure,
D: Demand curve for automobiles
S₁: Supply curve of automobiles prior to regulation
S₂: Supply curve of automobiles after regulation
FG: Clean up cost per unit
What is the total societal surplus prior to regulation described in Figure 12.2?

A) Area 0FGQ₁.
B) Area BEP₁.
C) Area CEP₁.
D) Area FGEP₁.
E) Area BEC.